I am selling a rental property mid year. It was rented for 5 months. I completed the rental portion for schedule E. When I get to the section - "Did you sell the asset this year it takes me to the Property Sales, Property Sales Cost, Land Sales and Land Sales cost", I completed it. Do I use only this section to complete it as the sales information on the property and not the Sale of business property portion for the same property. Doing both seems to double the sale on the form. The question is do I complete the rental portion for sale only and not the sale of business property? The is a large tax increase with both entries. Estimated taxes are due soon and I do not need penalties for underpaying. Thank you.
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you used "selling" but it seems you sold the property in 2024. you would enter the sale only through the rental worksheets.
this would be in the rental section under sale of property/ depreciation and only here
you must indicate the cost of the land which would be subtracted from the total cost of the property .
also indicate how acquired and that you sold it.
you will need to allocate the selling price and selling expenses among the assets
Nowhere else in Turbotax do you report the sale.
Thank you for the reply. So the entry in the rental portion is the only required entry to cover the sale of the property. And this because it was a rental and was actively rented in the same year of the sale. If it was not rented in the same year it would just be reported in the Sale of business property and no where else. The program adjusts for this very well with the entries. I was entering it twice by putting in both sections. That is why it was giving me such a large tax bill due. Hope this helps others in the same situation. Please correct this if I am wrong.
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