Live Tax Advice for Desktop Product Costs and Questions

[Benjamine]

The link did not answer my questions.  I am a Premier Desktop User and began the section on Depreciation (that FINALLY updated on 2/19/26).   I have sold a rental property and need more assistance than I believe the Community can help me with.   It is the ONLY area I need assistance with. 

Been on hold for over an hour so hoping you or someone can answer my questions. 

My TT program indicates  "live tax advice buy now for $60"

1.  Does the $60 with the tax expert cover unlimited questions and multiple conversations until I complete the required sections for sale of rental property?

2.  I have to file two states (resident and State where I owned rental property) - do I have to pay separate "advice" fees for those returns? Normally my Federal return flows to each and I only answer a few questions. 

3.  Does the "advice" help me compute my adjusted basis for building, land, and improvements, etc. and other calculations needed for the sale?

4.  Am I able to upload documents if necessary?

I appreciate any and all assistance - thank you!  

[RobertB4444 · Accepted solution]

The tax advice is just that - advice.  For $60 they will help guide you to where you enter data.  

But they can't enter the data for you and they can't do calculations for you.  That starts to become tax preparation and if someone prepares your taxes for you they become partially responsible for them.  

If you want to upload documents and have someone do the calculations for you then you want to have an expert prepare your taxes for you - which is still an option here.  

On the upside yes!  You can call as many times as you need as well as use the apps chat feature in order to get advice until you are ready to file.  

You can also come back here and ask as many questions as you like.

[Benjamine]

Thank you so much!  I'm so glad I posed the question in the Community. The representative I talked to yesterday said the exact opposite including that the Live Expert could assist with calculations and advice on determining basis.  I completely understand the logic that such would constitute "tax preparation".  Sure wish the rep was more knowledgeable since I would have wasted $60.00!  

I will try to continue on my own - is it best to pose my questions one at a time or try to gather a list of questions as I already have a few to ask.

Again, many thanks for the assistance!  

[DianeW777 · Accepted solution]

It depends on what you prefer. You can gather a few questions and ask all at once or add them as  you go. We will provide the guidance you need as the questions come.

@Benjamine 

[Benjamine]

I started the Asset Summary and was following @RobertB4444 suggestion of using the 5.8% calculation on appliances.  Besides the 3 appliances, I have an HVAC and 4 flooring replacements.  

1.  Do I assign a selling expense to each of the listed assets?  If so - are my total expenses including closing costs, supplies, and repairs or just the closing costs? 

My Disposition Report (not including the bldg/land  (haven't done that asset yet) is indicating a $519.00 GAIN on assets (excluding any sales expenses). 

2.  To complete the interview for the Bldg asset - the total purchase cost was $118,702

73,902 Bldg (58.7%) and 44,800 land (35.6%). 

Do I use the total sales price of $250K to determine the Bldg sales prices as $146,750 and Land sales price $89,000.

Again, to calculate sales expenses for bldg/land - do those numbers include repairs/supplies, etc., or just closing costs?

Many thanks!  

[DianeW777]

Here is an example of calculating the selling price for each asset. Just include the closing costs as part of your selling expenses. 

Any repairs should be included as an expense on rental activity. Also if you have a passive loss carryover see the instructions below to be sure it's accounted for in the year of sale in full.

How you prorate the selling price to each of the assets including the land.  

For any asset, such as appliances, that really have no value because they are past the recovery period of five years you can use a zero.

Use the original cost of each asset listed on depreciation, add those together then divide each one by the combined total to find the percentage of the cost for each asset.  Use that percentage times the sales price and sales expenses to find the selling price/sales expenses for each asset. If you want you can check the allocation of building and land in your county real estate tax office, on file now.

Example:  Original Cost (of each asset on your depreciation schedule)

$10,000 Land                = 13.33% 

$50,000 House              = 66.67%

$15,000 Improvements  = 20%

$75,000 Total                 = 100% 

Multiply each percentage times the sales price/sales expenses to arrive at each individual sales price/sales expense.

Passive Activity Loss Entry if applicable:

Assuming your passive losses were carried over each year, this will be a separate and identifiable entry which will carry to the Schedule E.  The full remainder of passive loss carryover is used in the year of sale as an expense. This is combined with your overall rental gain or loss to your Form 1040. 

• When you are on the screen 'Do any of these situations apply to this property?' (Property Profile section), be sure to check the box under Carryovers. 

See my notes below on entering the sales price/expenses for each asset inside the rental activity.

You need to dispose of the property by telling TurboTax how and when it was disposed of.  Follow the instructions below.

1. Click on Search (upper right) > type schedule e > Enter > click Jump to .... link
2. Answer the questions and on under Rent and Royalty Summary, click Edit
3. Click Update to the right of Assets/Depreciation.
4. Do you want to go directly to your asset summary?, click Yes and Continue
5. Click Edit to the right of each asset to be disposed of
6. Go through several screens until you get to Tell Us More About This Rental Asset
7. Click on This item was sold…….   And continue to answer the questions

You might also review information here for more details 

@Benjamine 

[Benjamine]

Still thoroughly confused - I've read and reread both your instructions and the link many many times.  

You indicate "Any repairs should be included as an expense on rental activity.  Also if you have a passive loss carryover see the instructions below to be sure it's accounted for in the year of sale in full."

There are no passive loss carryovers.   As to the repairs - they were all expenditures for the preparation of sale and were incurred after the tenant vacated; i.e., hiring a contractor to replace a bathroom floor, repair to HVAC system, etc.   

Are you indicating those amounts should be entered on the section of the Step-by-Step where I previously included those costs when the property was tenant occupied?   

If not, where? I understood those amounts are considered as expenses of sale that I would add to the closing costs.  

Since I'm having such a tough time - would it make sense to attempt to skip ahead to the Sale of Business Property before completing the Depreciation Section?  Would that possibly make it more understandable or does that affect the calculations. 

Just grasping at straws here.   

[AmyC · Accepted solution]

1. If you are no longer holding the property out for rent, the rental is terminated and your expenses will be either:

• added to the basis - capital improvement like a new bathroom floor or
• selling expense - example: HVAC repair a leak to get the house sold

2. If you were holding it as for rental property, then you can use Sch E for entering expenses. I doubt that you were but maybe you had it up for rent or sale. Items should only be entered on the Sch E depreciation section if the Sch E was still actively being used or advertised for rent.

3. Yes, skip to the sale, if the house was vacant and for sale only.

Reference: About Form 4797, Sales of Business Property

[Benjamine]

Many thanks for the clear explanation - I appreciate your quick response!