How do I dispose of a rental property asset? Just delete?

[LB641]

@pdedes

I feel your pain and frustration. I have been a TTX user for nearly 20 years, and it has faithfully been tracking my rental properties and other financials. In 2021, I sold 5 of my properties and am facing the issue you and others have described over the past couple days (I, being one of them). The key thing I have taken away from Carl's responses is that it is the TTX program, not the IRS, that does not properly handle the depreciation recapture of the assets associated with a property. We have to play with the sale price of each asset to convince TTX to report properly. 

@ednamanager

Turbotax makes it very difficult to report sale of a rental home.  One of my "assets" was a roof I am depreciating and I cannot figure out what to put in the boxes relating to price of sale of this "asset".

You need to make this process easier.  This is the first time I am having to take my taxes to an accountant after many years with Turbotax.

@Carl

I thought everyone was saying add a $1 to the original cost.

No. I said to add ***AT*** ***LEAST*** $1 to the original cost. 

To each above, thank you for being understanding and patient with us. We all do not come from an accounting or tax background, and thus we are speaking different languages, and different understanding of various terms. Yes, I agree with @pdedes and @ednamanager, and would like to know if they found the answer to what $ figure needed to be entered? I attached the 2021 Form 4562. All but a couple have a current depreciation value of $0. Those that do, with the exception of the structure, have a value no higher than $35. And frankly, they were in such poor condition or dead, that making them part of the sale would be silly. So I need to know how to dispose of them, prior to sale, or figure a selling price (IE: $1 over original cost? - except the structure, which sold at a gain). So do I go down this list, and sell of all assets, including those fully depreciated, and with a $0 current value? And add $1 to their original cost as the selling price? One thing is for sure, us novices, doing this for the first time, even though we have been using TTx for 20+ years, will be a bit more educated in the terms and language not common or familiar to us. And appreciate the expert's patients and understanding. Now, if TTx would just make this easier 🙂  Attached sheet

@Carl

@pdedes

@ednamanager

[jenv]

@ednamanager. Having the same issue.  It says it will walk you through during the depreciation part of the rental.  It does not automatically take you there.  You have to edit the asset.  I had to get advice from 2 accountants. Im still gonna have to get this checked.  So annoying.  

[LB641]

@jenv 

@ednamanager

@jenv - You are correct. Many of us have felt and expressed the same issues and frustrations. And when we get multiple and conflicting answers, if we get any answers at all, - is as you stated - annoying. They seem to think we are all tax experts and certified accountants. And they get frustrated when we try to work through our issues, and try to understand. Perhaps we should speak to them using terms of our various professions, and then cop an attitude when they don't fully comprehend. They are suppose to be helping, but instead they talk down, and then after communicating among each other, they completely stop answering.

Something as simple as, I purchased the AC unit in 2009 for 4000. Sold in 2021. Fully depreciated to 0. Do I sell it, and enter 0? Do I enter $1. Or do I enter $4001? Very easy question.  - Same as, in 2009 I purchased a range for $2000. Current value in 2021 of $10. Do I enter a sale price of $0? Or do I enter $11? Or do I do as previous, and enter $2001?  Is adding $1 to the original purchase price, and then using that number as the sale price OK (allowable)? If TTx did its job, it would guide us through. With some saying forget the various assets, and put a 0 for each one, and just put the sales price and sales expense in the House/Structure asset, then others saying no that is incorrect, is there any wonder we are all scratching our collective heads? But it does not, and so we have to ask the "experts".  One solid agreed upon answer and guidance would be truly appreciated. Doing the best we can, and hoping for the best - 

BTW - This is another answer from a tax expert. Yet another way? Correct way? Yet different from others answers.

The house sale uses the sale price while the other items need to be marked as sold for $0. The point is to get the remainder of the money spent on those assets subtracted onto your tax return.  Follow these steps:

1. Return to your rental
2. Go to depreciation section
3. As you go through the asset summary,
4. under Tell Us More, mark that it was sold, retired, stolen, destroyed, etc
5. enter the date you stopped using it for rental purpose
6. continue
7. confirm depreciation
8. special handling, select no
9. sales information
10. enter 0 for sale price

Do this for every asset not fully depreciated except the house since the house gets the actual sales price and sale."  (and what of the assists that are at 0 and fully depreciated? Enter a 0 as well?)