Just sold a rental property - never was listed on depreciation schedule. EDIT-fixed it!

[a2shutt]

I sold a rental property in 2020 that I had purchased in 2010. It was a tax auction property that I paid $1100 for, with a land value of $900. Probably due to the low value at the time, my former accountant never listed it on the depreciation schedule. There are other assets listed there, however (appliances etc).

Since I sold it in 2020, I'm trying to record the sale, which was $67,000. I understand that I need to go through all the assets and indicate that they were sold, but since the property itself was never depreciated how do I go about recording the sale in Turbotax Premier?

Thanks!

[garywilson-1961]

So technically your building was 200.00 dollars and land 900.    Land doesn't get depreciated but the building should have been.     

It is my understanding that your basis for the sale is 1100 less the potential depreciation you should have taken.

200 / 27.5 years for residential property (almost nothing but you were supposed to claim the depreciation as you go.

[AmyC]

The program will calculate the depreciation allowed which must be deducted. You can file form 3115 if you want to claim the depreciation.  About Form 3115, Application for Change in Accounting Method