You have a couple of options to report the sale of the property. One is in the business section of TurboTax, on the screen that says Let's gather your business info. Find the Less Common Business Situations menu and choose Sale of Business Property. That will work if you know the sale proceeds, cost basis of the property and the accumulated depreciation.
Your other option is to edit the asset entries in the business/rental section of your return and assign a portion of the sale proceeds to each asset, thereby reporting the sale of each one of them. Typically, you can assign a sale price of $0 to all the assets but the home or building in the case of a rental property.
To do that, go to your rental entries and on the screen that says Lets' gather your business info update the Rental Properties and Royalties entry. Later on edit your rental entry and on the screen that says Review your (name of rental) Rental Summary, choose Assets/Depreciation. Once in that section, go to the asset summary where you will see each business asset listed. Edit each entry and indicate that you sold each asset. Then you can enter the applicable sale price of each asset, effectively reporting the sale of the rental property.
The result of either of these methods will be that a portion of the gain on sale of the business or rental will be reflected as ordinary income to the extent of depreciation deducted on the assets (known as depreciation recapture) and the remainder of the gain will be taxed as capital gains.
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