Schedule E worksheet, TT flags sale date of non depreciable rental asset (bare land) as not supported for type X?

[jim13]

I leased a bare lot for the past few years.  I flagged the lot as Type X non-depreciable when I first entered the property information.  I sold the property last year and TurboTax is flagging the date of acquistion/date of sale as not supported for Type X property.  How do I account for my gain on the sale of a rental property that was bare land and therefore not depreciable.

[IreneS · Accepted solution]

To enter the sale of your nondepreciable asset (land) please follow these steps:

1. On the Review Your Rental Summary screen, click the Start/Update box next to Sale of Property/Depreciation.
2. On the screen Depreciation for Your Rental Property, mark the No box to answer Do you have any assets for this property that can be depreciated and click Continue. 
3. On the screen,  Review Your Rental Summary, click Done with Rental Property. 
4. You should see a screen, Any Other Situations?  Mark the box, I disposed of nondepreciable assets such as geothermal property and click Continue. 
5. On the Asset sales worksheet summary, click Edit next to the asset.
   
6. On the Asset sales summary screen, click Edit on the line next to the land.
7. Enter the sales information on the next screen, Enter the following information for this non-depreciable asset sale.  
8. Click Continue.
9. Click Done until you reach the screen, Your Profit or Loss Results So Far.
   

[jim13]

Thanks!

[wimstr]

Which category is a vacant lot zoned business

[JohnB5677]

A vacant lot zoned for business is still land and if it was income producing it would be handled as above.  However, if you're only selling the land it is considered investment property, and would be sold similar to a stock or mutual fund.

[Carl]

Which category is a vacant lot zoned business

If you rented it out, then it's commercial rental real estate. But it doesn't change the fact that land is not depreciated. So in the rental section your COST and COST OF LAND will be identical.