Rental property didn’t update from 2021 to 2022 and I need to enter final payoff payment.

[Cynthiad66]

The final payoff payment is not a deduction as a rental expense.

You can deduct the ordinary and necessary expenses for managing, conserving and maintaining your rental property. Ordinary expenses are those that are common and generally accepted in the business. Necessary expenses are those that are deemed appropriate, such as interest, taxes, advertising, maintenance, utilities and insurance.

For additional information on rental income and deductions, please use the IRS link below.

Rental Income and Expenses

[duggone]

My information was not complete my mistake….  The rental property was sold in 2020 and buyer paid off balance due in 2022.   Problem my data is not showing up in TurboTax 2022 to enter final payoff payment  to calculate depreciation amount.  Please advise Thanks 

[PatriciaV]

Please clarify why you are expecting to report depreciation on a property that sold in 2020. Perhaps you meant that you need the installment sale balance?

[duggone]

Yes the installment balance was paid off in 2022.  Where do I enter final payoff payment ???

[PatriciaV]

Use the following steps to enter your Installment Sale Information:

In TurboTax Desktop or Online, you can jump to the Installment Sales Section by opening your return then entering “Installment Sales” in the TurboTax search box. Click the Jump to installment sales link. This will take you directly to the screen where you will select that you had an installment sale.

Or you can find the Installment Sales section in TurboTax under the “Federal Taxes” > “Wages & Income” > “Less Common Business Situations” > “Installment Sales.”

If the installment sale information was not transferred from last year, you'll need to know the specifics of the sale, including how much was left to be paid. Then report the final payment. Be sure to follow the prompts until you are back on the income summary page to save your work.