Upon sale of property how do I include all depreciated items on the FAS as sold?

[4SSparky]

Using TT Business 2020. The entry of properties into a fixed asset schedule seems a bit kluged. In any case, the best I can tell I have an 8825 worksheet for each property and an asset worksheet for depreciation. I also have asset worksheets for each of the various improvements or capitalized expenses made over the life of the property. For some properties this is multiple worksheets. Everything looks great on the depreciation worksheet/report for each property. The problem is that when when the property is marked as sold only the first asset is marked as sold while the additions and improvements show as still in service. How do I enter a rental property and the various depreciable items over its life and then have them all disposed and marked on the sale date?

[Mike9241]

yep. that is an issue with Turbotax. professional software allows mass disposition by allowing the linking together all the assets common to the property sold. so on form 4797 it looks like only one asset was sold.  I won't argue the merits of this because some will argue the fair market value of each asset should be determined and thus the sale of each asset would be reported separately.  

your options are to enter the FMV of each item or use another reasonable method to allocate the sales price and selling expenses.  the only way to get rid of an asset for a property that was sold is to delete it or indicate it was sold.  just an FYI, if audited by the IRS, it could challenge your method if FMV is not used. 

[4SSparky]

Thanks for the answer Mike. I appreciate the options and such a thoughtful and quick response. 

I honestly figured that was how it would go, but am happy to know I am not missing something. The bones of TT are really good but a few trickle down items from the big-boys software would make things so much smoother. Thankfully there are good folks like you helping workaround. You are appreciated.