How do I find the question “Did you stop using this asset in 2019” for relinquished property?

[clihexc]

I did a like-kind exchange last year and read somewhere that I need to mark that I “stopped using this asset in 2019” somewhere for the property I sold, but could not find it under Depreciation anywhere for that property.  Please help!

[tagteam · Accepted solution]

It would be under Assets/Depreciation in the Rental Properties and Royalties section of the program if you entered in that section in the first place (i.e., if you never entered the property in that section in TurboTax, it will obviously not appear).

[clihexc]

Thank you so much for responding.  Yes, I had the property under Rental Properties for the past 10 years however, when I go to Assets/Depreciation -> Edit Depreciation (where it says Edit if either of these apply and one of them is Stopped Using an asset listed here in 2019” -> Tell Us More About This Rental Asset: I selected None of the Above -> Confirm Your Prior Depreciation.  After that, it gives me the Asset Summary for the estimated Depreciation for 2019.  When I do Continue, it brings me back to the Asset list for the depreciation again.  I do not see the “Stopped using this asset” anywhere in the process.  Am I doing something wrong? Thank you for taking your time to help me out.

[tagteam]

You should be aware that are a couple of options for handling your scenario (1031 exchange).

Regardless, you should review the Property Profile section because there is a similar screen in that section concerning the disposition of the property.

[clihexc]

The only question under Property Profile related to the like-kind exchange is under Do Any of These Situations Apply to This Property screen, to which I select None of the above (not marking “I sold” checkbox since the sale should be entered under Sales of Business as part of the Like Kind Exchange transaction. I don’t see anything else related to “Stopped using this asset”.  

[clihexc]

It turned out the questions on CD/Desktop version of TurboTax is being phrased differently from online version.  The desktop version presents the checkbox choice as “The item was sold, retired, stolen, destroyed, disposed of....” whereas the online version is simply “Did you stop using this asset...”.  For a like-kind exchange transaction, you want to be very careful when selecting the choices with the word “sold” under Rental Properties and Royalties since this is an exchange transaction and the “sell” information should only be entered under Sale of Business Property.  I understand CDs are static once they are distributed but for the desktop version to have such different wording without any link for help is very frustrating.  How I found out about this?  I had to fill out the online version as well and spent almost twice as much time going through everything, just to make sure I’m not crazy or blind.