TurboTax not including 'Unrecaptured Section 1250 Gain Worksheet' when disposing of rental

[JeanAtkinson]

This year, I had a property that was destroyed by fire, and got an insurance check. I'm not planning to rebuild, so my understanding is that this needs to be reported the same way as the sales of a business property.

However, looking at my return, Line 19 of Schedule D (Unrecaptured Section 1250 Gain Worksheet) is blank, and there is no worksheet. This surprises me because the IRS instructions say it's needed if "You sold or otherwise disposed of section 1250 property (generally, real property that you depreciated) held more than 1 year."

The way I did this in Turbo is:

1. Under income, I marked the 'asset' as having been destroyed
2. Under Deductions and Credits, I reported it under 'Disasters, theft, and other property loss or damage', where is asked me for the cost basis and insurance payment.

In this situation, is it normal that the 'Unrecaptured Section 1250 Gain Worksheet' ends up not getting used at all?

[Mike9241]

the workaround would be to use the disposal section in schedule E. Nowhere on the 4684 is the 1250 amount entered and i see no way to link schedule e to the 4684.  so how did you stop depreciation on the property and include the land cost in the sale info? 

most likely the way you did it when you roll 2023 into 2024 the property will still be in the file. 

[JeanAtkinson]

I don't see a disposal section on schedule E, other than reducing the Fair Rental Days (which I did).

"so how did you stop depreciation on the property and include the land cost in the sale info?": depreciation was reduced since I reduced the Fair Rental Days. Note that I still own the land, as only the structure was destroyed. So there is no 'sale info' for the land. There will be in a later year if I sell it.

"most likely the way you did it when you roll 2023 into 2024 the property will still be in the file": the property needs to still be there since I still own the land. But all the assets are gone.