Rental Property Sale

[JanetF2]

I have been searching through all previous answers but cannot seem to find what I need, so sorry if this has been covered before.  We purchased our rental in 2008, renters moved out in October 2019 but could not find a buyer until August 2020, depreciation was about 70,000. I managed to handle that however, we purchased for 332,000 and  sold for 250,000 so we ended up with a loss.  My question is where can I actually enter these figures, turbo tax does not seem to automatically compute or lead to the correct form.  Thank you.  I already had to start over as I made the mistake of saying I had not rented for all of 2020 so TT deleted everything!

[AmeliesUncle]

Did you restart the entire return, so that it now shows your rental again (it is not deleted)?

Did you have any Passive Loss Carryovers on Form 8582 from last year?

[JanetF2]

Hi Thanks for replying.  I had to start the entire return again to get it to import my figures from 2019.  I have that now.  I entered it as sold but there appears to be  no place to enter how much we sold it for. Which as I said was well below what we paid for it.  I was hoping to be able to use that loss against any future tax.  No I did not have any passive loss carryovers.

I saw someone say you had to fill out Form 4797 but then someone else says that turbo tax should do that automatically, but it has not.

Hope that makes sense

Thank you

[AmeliesUncle · Accepted solution]

You need to go through each "asset" for depreciation to indicate it was sold, and it will ask you the sales information (assuming you say "no" to the "Special Handling" screen").

After entering the sale price, Form 4797 should show the $12,000-ish deductible loss (adjusted for any numbers that you did not mention in your post, such as selling expenses).

[JanetF2]

Thank you, very helpful and have now completed return. Much appreciated