RE: Sale of Rental Property

[Superbri]

Good Afternoon,

I had rental property I acquired in 2013 rented it out 100% of the time until I sold it this year in November.  I tried entering it under Rental Properties and Sale of Property/Depreciation and the results come out skewed indicating I made over approximately 200k when it was less than 75K? I entered it similar to below and the results come out as they should after I entered the depreciation. The question I have is this correct and where can I deduct the realtors commision when inputting it like this? I ask because it tells me this is the way I need to complete it if ;This asset is a rental, home office, or home office asset that qualifies for the exclusion of gain from the sale of a personal residence. My property does not qualify for the exclusion however? So should I enter it as below? Thank you!

If you disposed of this property by any of the above means, enter your sales information later in the interview under "Business Income/Sale of Business Property."

To report the sale of this property:

1. Type 'sale of business property' into the search box
2. Select 'Jump to sale of business property'
3. Then select 'Sales of business or rental property you haven't already reported.'

You will have to enter the amount of prior year depreciation by hand.  You can get that figure from your prior-year return.

[Critter]

Then select 'Sales of business or rental property you haven't already reported.

Wrong ... do NOT use that section of the program.  You should have already reported the sale back in the Sch E section. 

but you should have already reported the sale in the Sch E section ....

In the Sch E section you will indicate you disposed of the property and then continue into the ASSET section and sell off all of the assets.  Hopefully you have been depreciating the property all these years ... if you have not then you will need professional assistance to correct that mistake. 

[Superbri]

Thank you for the reply. I have been depreciating it however its not calculating the totals correctly. I purchased the property for 375K in 2013 and sold for 441K in 2019, total depreciation is 23K, its indicating I made 198K off of the sale! Not sure what i'm doing incorrectly I divided the land and improvements and had 28K in expenses?! When I calculate in the business section everything adds up correctly?

[Critter]

Please use the following link to contact Customer Support for further assistance.

https://ttlc.intuit.com/community/using-turbotax/help/what-is-the-turbotax-phone-number/00/25632

[hgarcia60]

I had a similar situation last week, but I requested help thru turbo tax and the lady was able to guide me step by step. We went to forms and chose Schedule D and manually we input (purchase price - cost - sale price). 

[Carl]

Most likely the issue is that you have more than one asset listed in the assets/depreciation section, and you are not allocating your sales price across those assets properly. If you sold at a gain, then you *MUST* show a gain and every single asset. Likewise, if you sold at a loss then you must show a loss on every single asset. Doesn't matter if that loss/gain is only $1 on some assets either.

When you show a gain on some assets and loss on others, the TurboTax program *CAN* *NOT* handle it correctly - particularly with the 4797 and the SCH D.

Take note that you need to allocate your sales price across all depreciable assets. So since land is not depreciated, you will not allocate whatever your land sales price is. You will only allocate your structure sales price across other depreciated assets.