Where do report a rental property that was sold in May but never rented out in 2024? Trying in the investment area, and the "did not rent" box removed the property

The rental should have been set-up in the rental section for past years.

• Go to the rental section and select Edit for that rental listed.
• Go to the Property Profile
• Continue through that interview and be sure to select "I sold or disposed of this property."

 

Finish this interview but don't exit the rental section

Although there was no income for the rental, as you say it wasn't rented, enter any expenses relating to the property. Depreciation will still be calculated for the time in 2024 until it was sold.

 

After Income and Expenses are entered, Scroll down to Sale of property/Depreciation

• Go to your asset summary
• Select EDIT for the property
• Go through this interview and be sure to answer ALL the information needed on the "Tell Us More About This Rental Asset" screen including that it was sold and date sold.

 

Continue through this interview to report the sale.

 

You will split the sales proceeds between the building and land as well as any additional assets you may have added. 

 

You may have Capital Gain, and you almost surely will have Depreciation Recapture. 

 

Depreciation Recapture is taxed as ordinary income and Capital Gain will be taxed at your capital gain rate.

 

Depreciation Recapture Link