Depreciable asset (Land and building) accidentally listed twice in Schedule E Assets since 2011. Sold property and need to know how to dispose of second listing?

Purchased rental property in 2011and have filed using Turbo Tax ever since. In Schedule E, somehow the property is listed twice as a depreciable property asset; once as 'address, building', which is the one I added when purchased in 2011, and a second time as 'Residential', which I do not remember adding. Each listing shows a (slightly) different asset value and land value, with depreciation amounts for each listing for the past 5 years. My issue is that I sold the property last year and need to close out the assets. I declared the 'address,building' asset as sold, but do not know how to handle the second 'Residential' listing. I am not sure that I should delete it, or even show it as sold. Please help.

1599

Level 13

Jun 4, 2019 2:20:44 PM

A couple of comments:

From your facts, it appears that you may have taken depreciation twice on the property. If that is the case, then I recommend you amend your prior year tax returns.
If the first bullet is correct, you also run the risk of taking depreciation twice in 2016 as well. To address this, I would recommend that you show the duplicate property as sold on 1/1/2016. Then you will need to compute the tax basis and show sales proceeds equal to the tax basis so the net result is no gain on this asset. While the sale of the asset may still show up, there should be no gain or loss.

New Member

Mar 1, 2020 3:11:37 PM

I had the same issue where I filed my tax return and then this year I pulled up last years tax return and see a "Residential" depreciation was entered that I didn't notice. The numbers are completely wrong from what I entered and have on my records. Is this an error with TurboTax?

Expert Alumni

Mar 3, 2020 7:29:30 PM

Are you computing the depreciation differently?

Are you valuing the land and the building separately?

The value of the land does not change, it is not depreciated.

What depreciation method are you using for the building and any other assets?

Did you add any assets or improvements? Are you depreciating them from the date they were place into service?

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Depreciable asset (Land and building) accidentally listed twice in Schedule E Assets since 2011. Sold property and need to know how to dispose of second listing?