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Returning Member

Sale of Rental property - on rental sales information section, Asset Sales Price, other too

Hi - 

I sold my rental property in Mach 2019. I have 2 questions.

1st -  I'm in the rental sales information section, it says 

Asset Sales Price                    $335,000

Asset Sales Expenses             $33,198

Land Sales Price

Land Sales

Is this correct above? Enter the sales price & then the expenses? Nothing in Land. If not, then tell me what to do.

When I did enter the amount in, my refund went way up $10,000. Is this right?? I am a single mom, low income.


2nd - Do I have to anything else, like Capital Gains, or Form 1099-S proceeds from real estate transactions, or form 593 to enter into TT.

I have never sold a rental property before.

1 Reply
Level 15

Sale of Rental property - on rental sales information section, Asset Sales Price, other too

Please read and follow the guidance below. Take special note that if you sold the property at a gain, then you *MUST* show a gain on each and every individual asset. Likewise if you sold at a loss. So no, you can NOT leave the land sales price blank. You can however, put all your sales expenses in the "Asset Sales Expenses" and leave the "land sales expenses" blank, *PROVIDED* you still show a gain (or loss if applicable) on all assets after deducting the sales expenses from the asset you apply them to.

Reporting the Sale of Rental Property

If you qualify for the "lived in 2 of last 5 years" capital gains exclusion, then when prompted you WILL indicate that this sale DOES INCLUDE the sale of your main home. For AD MIL personnel who don't qualify because of PCS orders, select this option anyway, because you "MIGHT" qualify for at last a partial exclusion.

Start working through Rental & Royalty Income (SCH E) "AS IF" you did not sell the property. One of the screens near the start will have a selection on it for "I sold or otherwise disposed of this property in  2019". Select it. After you select the "I sold or otherwise disposed of this property in 2019" you continue working it through "as if" you still own it. When you come to the summary screen you will enter all of your rental income and expenses, even it it's zero. Then you MUST work through the "Sale of Assets/Depreciation" section. You must work through each individual asset one at a time to report its disposition (in your case, all your rental assets were sold).

Understand that if more than the property itself is listed in your assets list, then you need to allocate your sales price across all of your assets.  You will only allocate the structure sales price; you will NOT allocate the land sales price, since the land is not a depreciable asset.  Then if you sold this rental at a gain, you must show a gain on all assets, even if that gain is $1. Likewise, if you sold at a loss then you must show a loss on all assets, even if that loss is $1

Basically, when working through an asset you select the option for "I stopped using this asset in 2019" and go from there. Note that you MUST do this for EACH AND EVERY asset listed.

When you finish working through everything listed in the assets section, if you ever at any time you owned this rental you claimed vehicle expenses, then you must also work through the vehicle section and show the disposition of the vehicle. Most likely, your vehicle disposition will be "removed for personal use", as I seriously doubt you sold your vehicle as a part of this rental sale.


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