Sell of rental property

[bigdog3]

If I indicate the year was held for less than 1 year, it does not ask for the 1099-S information.

Should I force it to go through the held for more than 1 year section instead?

[AmyC]

@bigdog3  I made a scenario to buy and sell a rental in the same year and it lets me sell the house. I don't know why you are having trouble entering the sales price and expenses. You can fill this form out for someone to call you.

[mark2382]

I think I have a variation on prior questions...

In my case, I purchased two properties in 2019, and because they were managed by the same management company, I received one 1099. So my accountant (that I used prior to Turbotax) aggregated these properties, depreciated the buildings (not land 😉 ) and reported the income and expenses as a total as if the properties were one.

Fast forward to 2021, and early (Feb) in the year, I sold one of the two properties.

From reading past replies, looks like the easiest way to report this is to use sale of business property approach. And since the purchase price was basically the same, I would guess I could allocate the depreciation 50/50 between the sold and the retained property.

But now, how do I get the depreciation (this year and prior cumulative depreciation) correct on the retained property? 

Thanks

Mark

[LeonardS]

Each of the individual properties should have its own depreciation schedule. Generally, a management company only reports income and expenses not depreciation,  Your previous accountant may have aggregated both properties for income and expenses but still should have maintained individual depreciation schedules.

At the time you started using TurboTax you should have entered each property separately.  This will  provide you with individual depreciation schedules for the properties.  Then when you receive your 1099 from the management company you will divide the expenses between the properties.  When you report the sale of one property in 2021you still have all the information for the remaining property. 

To enter rental property in TurboTax sign into your account and follow these steps: 

1. Select the Wages & Income tab
2. Scroll down to the Rentals, Royalties, and Farm Select Show more
3. Select Start on the line for Rental properties and Royalties (Sch E)
4. On the page Did you have any income from rentals or royalties? Check Yes.
5. Select the Box for Rental property on the page What are you here to report?
6. Follow the screen prompts to enter your rental information

@mark2382

[mark2382]

Leonard,

Thanks, I will dig thru some records and figure out the individual depreciation schedules.  And you are right, the management company only aggregated the rents and my accountant chose to aggregate everything.  

Are you saying that the way out of this is to create two assets for 2021 (ignore the import from 2020), separate the depreciation schedules and then sell one? 

Thanks again!

Mark

[ColeenD3]

Go back to 2019 and amend to separate the properties. They are two different physical buildings and one has nothing to do with the other. Make the corrections so that it will be done correctly from day one.

[mark2382]

Coleen,

Just to be sure I understand your recommendation here....   You are recommending that I amend 2019 and 2020 and file the changes with the IRS? Never done that... The fact that 2019 was done by my prior (retired) accountant means I don't have access to the original figures that are on his computer...

Regards,

Mark

[ColeenD3]

If you can't, you can't. It's just always better the have things done correctly than to try to improvise a way around a mistake.