Disposal of (small appliance asset) Schedule E Rental Property

[williambaldwin17]

We're disposing of a clothes dryer (acquired 06/16/2016 & began using 06/16/2016)  that no longer works, was hauled off to junk yard.  We bought (paid $651) for a new dryer for rental property 08/17/2023 & tenants began using new dryer in rental property 08/17/2023.

Disposition Information: (these instructions are unclear to me). “Enter the date of sale or disposition for this asset.  If the date you actually acquired this asset is different from the date you started using it in your rental, enter the date actually acquired.  If the dates are the same, leave this field blank”.  (what date do I enter? or do I leave date blank?)   Next screen asks..... “special handling required for this asset?”  (Do I answer “yes” or “no” to this screen?)  This asset(dryer) was no longer working (in-operable) it was hauled off to junk yard, it was not sold, not given away to anyone.   The next screen ....

“Enter Asset sale information”?  It’s asking for “sales price, business portion”  ______ and sales expense, business portion? ______   asset was not sold – so enter $0.00 for sales price? 

[DianeW777]

Yes, you could leave the space blank for 'date you started using it in your rental' because it is the same date you acquired it. However, if a date is needed to move forward put the date you acquired it because it's the same date you began using it for rental purposes.

Answer No, to 'special handling required for this asset' because it is not required.

Yes, enter zero for the sales price and the sales expenses because you junked the unusable, no longer functioning asset. 

Your result should say you have no gain or loss on the asset because based on the date placed in service, all depreciation has been used up and there is no recapture because it was not sold, it was junked.