I am not sure how to claim rental income and disposal of same property in the same year.

kgh1058 — Thu, 06 Jun 2019 09:07:13 GMT

I have rented a single family home for past 10 years. I never took any property depreciation while filing my taxes. I disposed of the property in 2016. Now what do I do?

Yes, you can report this activity under Wages & Income >>...

PatriciaV — Thu, 06 Jun 2019 09:07:15 GMT

Yes, you can report this activity under Wages & Income >> Rental Properties. First, set up your rental property, then enter income and expenses for the year. Also set up the building and improvements for depreciation. (See instructions below)

Even though you did not report depreciation expense while reporting rental activity, the IRS requires that depreciation is included in the calculation of the gain or loss on the sale of Rental Property.

Per Rental Property IRS Pub 527 Claiming the Correct Amount of Depreciation "If you did not claim all the depreciation you were entitled to deduct, you must still reduce your basis in the property by the full amount of depreciation that you could have deducted."

Follow the instructions below for entering income, expenses, and capital assets (building and improvements). You must complete the Asset/Depreciation section in order to report the sale.

The sale of a Rental Property is reported in two areas of Rental Properties and Royalties.

See the instructions below:

https://ttlc.intuit.com/replies/3388350

topic I am not sure how to claim rental income and disposal of same property in the same year. in Investors & landlords

I am not sure how to claim rental income and disposal of same property in the same year.

Yes, you can report this activity under Wages & Income >>...