Sold my rental property

[PegK]

Grrrr. No clear pathway to entering the sale of our rental property.  The info provided on the Turbo web site doesn't work.  Other issues, too.  After 20 years of using turbo tax and paying $110 for the business edition this year I am having to hire an accountant a pay a couple of hundred dollars. Turbotax was great when there were not real changes not so much with you have some real changes. Disappointed.

[Anonymous_]

You indicate you sold the property in the Property Profile section and then also in the Assets/Depreciation section of the program.

Are you stuck somewhere? Did the program not ask for the details of the transaction?

Which version of TurboTax are you using?

[PegK]

Thanks for a quick response.  I am using Home & Business 2020.  First, when I go to Income Summary, I cannot even find rental listed. I have to go to the "topic list" to even find the rentals. Then it takes me to the rental and royalty summary where the property is listed and asks me if I want to add another (answer is no). 

So I opt for "edit" by the property.  There is a place that says  "sale of property;depreciation" and I opt to update that. There it asks if I want to go to my asset summary. If I say yes, it lists my property assets. I can add another asset (which I don't want to do) or go back.  If I then opt "no I want to review my answers" it asks if I bought items for my business that cost less than $2500 (no) did I make improvements (no) then goes back to the property assets summary.  

My only other choice is "done".

Nowhere does it give me a choice about selling even though this topic is supposed to do that.

[Anonymous_ · Accepted solution]

Try starting with the Business tab and click Business Income and Expenses. 

Click the Update button in the Rental Properties and Royalties section. Review your property and make sure to indicate that you sold the property in the Property Profile section.

In the Sale of Property/Depreciation section, go through the screens carefully and make sure you checked the box indicating you sold the property. The program will then prompt you for the date you sold the property.

[PegK]

Wish I could send you a screen shot.  I went carefully through the screens once again. I made sure the box that I sold the property early on in the process was checked.  When it brings me to the "Property Assets" page there is a small notation: "Earlier you told us that you sold your Little Cottage. Be sure to enter your sales information in this section so we can calculate your capital gain or loss."  

It all stops there. There is no place to enter that the property was sold.  There is just my list of assets. When I list it as an asset, it never asks was it was sold for, just the date, so I don't think that is right. And there were closings costs, etc. 

[DianeW777]

You are correct.  You must go into each asset, indicate it was sold, then enter the sales price and sales expenses. This is the normal process for any rental sale.  

The IRS requires that the selling price be proportionately prorated to arrive at a selling price for each 'piece' of a rental property since many assets can be placed in service at different times, such as your roof.

The selling price should be prorated for each asset then entered for each asset when you indicate they were sold or disposed of. You will not lose the remaining depreciation because you will use the remaining basis against the selling price to determine gain or loss. 

To figure out the selling price for each asset:

1. Take the current basis of each asset against the total combined basis of all of your assets to figure out the sales price for each one; OR 
2. Determine a fair market value for each asset against the total value of all assets to figure out the sale price for each one. 

You need to dispose of the property by telling the software how and when it was disposed of. 

• Down the left side, click Federal
• Click on Income & Expenses
• Under Your income and expenses, scroll down to
• Rental properties and royalties, click Edit/Add
• Do you want to review your rental?, click Yes
• Under Rent and Royalty Summary, click Edit
• Click Update to the right of Assets/Depreciation.
• Do you want to go directly to your asset summary?, click Yes and Continue
• Click Edit to the right of the assets to be disposed
• Go through several screens until you get to Tell Us More About This Rental Asset
• Click on This item was sold…….
• And continue to answer the questions

See also here.

[scirving]

Same here.  No clear path to enter the sale of the property.  Number #1:  I sold my property Feb 2020, therefore I did NOT rent it out at all.  So, the software deletes the rental property.  When the property is deleted, how are you suppose to go in and edit it ?  If I can't edit the rental, how am I suppose to get to the fact that I sold it.

grrrrrrr. 

[ColeenD3]

@scirving

If you have no rental income, the Schedule E does delete. You would then need to enter the sale in Sale of Business Property. You will need your prior year depreciation worksheet and Form 8582 if applicable.

1) Wages and Income

2) Other Business Situations

3) Sale of Business Property

4) Other Property Sales

5) Select Sales of Business or Rental Property that you haven't already reported

6)Choose No to the question, "Do all of the following apply to the property you sold?".

7)Choose Yes to the following screen that asks, "Do any of the following descriptions apply to the items you sold?".

8)Select the type of property from the drop down box.

9)Enter the information for your sale.

[kyouyoon]

Thank you! 

The screen shot was very helpful!

[rchmd]

where do I enter the sale of a rental property? I am using Premier

[HelenC12]

@rchmd

To enter the sale of your rental property, see I sold my rental property. How do I report that?

[EMAZFQV]

I have tried now, 5 times, to get the software to ask about the sale of my rental property.  Given the number of people that are bringing this up, is there a glitch? The box is checked that I sold the property.  But I don't' see it anywhere including in the sale of property/depreciation section.  I have updated the software, but still no pathway.  Can you help, please?

[Kenn]

I am not a high level user so take this with a grain of salt. When you select the property in the rental section the top box is Property Profile. One of those screens will have a checkbox for "sold". When you finish that section you then go to the Sale of Property/Depreciation section. Go to your Asset Summary and edit every item. There will be a series of questions about the sale there. Have you gotten to that point?

[ColeenD3]

There is no information as to whether or not you rented in 2021. If you did, enter the information in the Rental Section. If not, enter it in Sale of Business Property.

• The first entry for the sale is found during the set-up of the property: Tell us about your situation this year/Click Sold or disposed of property

Next, the asset section of expenses will already be checked: 

*Assets

*Sold rental property

Includes info on the property you sold or disposed of. Since we know this applies to you, we've already selected it.

• After you click on Asset, you will be asked about the purchase: Tell Us About This Rental Asset
• In the screen Tell Us More About This Rental Asset, you will indicate the sale the date of the sale and the date you began using it for business. You can see the screenshot in a previous answer.
• Next: Confirm Your Prior Depreciation
• Next: Special Handling Required?
• Next Home Sale?
• Next: Sales Information. This is where you will be asked about the sales price. This screenshot is also in a previous answer.

[derelict]

The one thing missing in that previous post is the correct answers to give!!
Let me expand, based on my experience with TT Premium 2022 :

• Next: Special Handling Required?    NO !!!
• Next Home Sale?      NO !!!
• Next: Sales Information.
  
  If you do *not* answer NO to both of those questions, you simply do NOT get the Sales Information screen...
  
  I kept falling onto Sales Info by accident, but then could not find it later when I was looking for it...
  The problem was, I wasn't really sure whether I had Special Handling Required... but unless you say NO, you will not get to the Sales Info screen !!!!!!!!!