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Ven-101
Returning Member

Sale of rental property

I am using Desktop software, not online.

 

1. My understanding is that the sale of rental property should be in the Business Items, Sale of Business Property.  There is no option to show sale of Rental Property under "Rental Properties and Royalties".  

Is my understanding correct?

 

2.  The property was sold in the middle of the year, but TT is computing the depreciation for the whole year, and am not able to change/override the depreciation amount.  

How to deal with that issue?

 

 

7 Replies
DaveF1006
Employee Tax Expert

Sale of rental property

It depends. What Turbo Tax Software version are you using?

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Ven-101
Returning Member

Sale of rental property

Turbo Tax Premier

AmeliesUncle
Level 12

Sale of rental property


@Ven-101 wrote

 

1. My understanding is that the sale of rental property should be in the Business Items, Sale of Business Property. 

 

There is no option to show sale of Rental Property under "Rental Properties and Royalties".  

 

 

2.  The property was sold in the middle of the year, but TT is computing the depreciation for the whole year, and am not able to change/override the depreciation amount. 

 


 

1a)  In most cases, no.  In most cases it is reported in the Rental section (unless the "Special Situations" screen applies, see answer for 1b).

 

1b) In the introductory part of the rental section (where you enter the address, etc.), check the box it was sold.   Then you need to go EACH "asset" that you were depreciating, and check that the "asset" was sold.  Keep going through that asset, and it will ask you for the sales information.

 

2) When you go through the assets (see 1b), you will enter the date it was sold, that that will prorate the depreciation.

 

 

Mike9241
Level 15

Sale of rental property

sale of rental property in the desktop software is reported through the rental schedule.

specifically through the asset entry worksheets if you are not using the step-by-step mode

 

Ven-101
Returning Member

Sale of rental property

Thanks much, that was very useful.

Where do I input the cost basis of the property, i.e., the  total cost including legal fees, improvements, etc.

Similarly, where do I show the net cost of sale, i.e., after the closing cost, commissions, etc.

AmeliesUncle
Level 12

Sale of rental property

Have you done what I told you with the assets?  It is all there.

Critter-3
Level 15

Sale of rental property

Have you been depreciating the property at all in the prior years ?    If you did then enter that info in the Assets section when asked for them then indicate the property was sold.  

 

If you have not depreciated the property then RUN  to a local tax pro to get the huge error corrected.  

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