Sell rental property depreciation and amortized items

[MaverickAl]

I sold my rental property and I saw this Article to how do I report it : https://ttlc.intuit.com/community/rental/help/i-sold-my-rental-property-how-do-i-report-that/00/2625... , but I have some questions. 

1- I have 3 items as depreciation assets in my rental, Building, Land ( which did not depreciate), and appliances, technically I sold the building and I follow these steps and put the sales price, but should I put 0 value for land and appliances for disposal or is there another way I should Follow up?

2- I have mortgage refinance expenses as well as amortized items for 30 years, should I dispose of that with 0$ sales price as well?

3- I put all closing costs as Expense of sale, but where should I put the renovation cost ? under rental property expenses?

[Critter-3]

PLEASE get professional help if you don't understand what I am going to say:

1- I have 3 items as depreciation assets in my rental, Building, Land ( which did not depreciate), and appliances, technically I sold the building and I follow these steps and put the sales price, but should I put 0 value for land and appliances for disposal or is there another way I should Follow up?   All the assets must be sold and the selling price & cost of sale must be prorated between them.

2- I have mortgage refinance expenses as well as amortized items for 30 years, should I dispose of that with 0$ sales price as well?   Yes ... it is also disposed and the program will handle the details automatically... none of the sale price is allocated to the amortized items.

3- I put all closing costs as Expense of sale, but where should I put the renovation cost ? under rental property expenses?   NO they are not deductible expenses on the Sch E ... they must be prorated along with the selling price. 

Here is a simple example of ratios ...  if you have more assets than the example then you will have more lines.  Remember if you divide a big number into a littler number you get a % ...  thus 5000/10000 = 5%

       original  cost basis          ratios                  Sales price             cost of sale 

home    80000                   80%                          160,000               8,000

land       15000                   15%                           30,000                 1,500

roof        5000                        5%                           10,000                   500 

totals     100,000                100%                        200,000               10,000

All you need to enter into the program is the % of sales price & % of cost of sale for each asset ... IGNORE the depreciation taken as it is immaterial for the sales of the assets. 

[Carl]

Here's some additional details for you.

If you sold the property at a gain, then you *MUST* show a gain on each listed asset in the Sale of Assets/Depreciation section. The amount of gain doesn't matter. Can be $500,000 on one item, $1 gain on the next item, $500 gain on the next item. It just doesn't matter. But if you show a loss on some assets and a gain on others the program will "NOT" recapture depreciation correctly and the program will "NOT" flag it as an error. But your tax return and taxable gain "will" be wrong.

For your amortized asset, any part of that cost not yet deducted is fully deductible in the tax year you sell it. Assuming you entered it correctly in TurboTax in the tax year you "acquired" the asset (usually these are financing fees, or refinancing fees), here's how to deal with it in the program so the program will handle the math correctly.

In the Sale ofAssets/Depreciation section for that rental property, elect to edit/update the entry for your amortized item.

- On the "Review Information" screen click Continue.

- On the "Did you stop using this asset 2021?" screen, click YES.

- On the "Disposition Information" screen, in the disposition date box enter the date you closed on the new loan or closed on the sale. Then click Continue.

 - On the "Special Handling Required?" screen, click YES.

- On the "Depreciation Deduction Amount" screen, select Transfer These Fees For Me To Other Expenses. Then click Continue.

You'll see the remaining fees of the old loan to be deducted in the Rental Expenses section, very last screen of that section. The entry will start with "Unrealized Refinancing Fees...."