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Level 3
posted Feb 23, 2022 4:44:23 PM

Calculate the depreciation of a multi-year rental property in the year of sale.

A multi-year rental property was sold in end of Nov 2021. How can the part-year depreciation (11-mo in this case) of this rental property be calculated?

 

Thank you for your kind advice.

0 1 452
1 Best answer
Expert Alumni
Feb 23, 2022 5:29:38 PM

If the property is being reported as an asset on the screen Your Property Assets, the partial year depreciation will be calculated when you dispose of the asset.

 

You can access this screen by going to:

  • Federal / Wages & Income /  Your income / Rentals, Royalties and Farm / Rental Properties and Royalties.
  • Click Edit to the right.
  • Click Edit at the screen Your 2021 rentals and royalties summary.
  • At the screen Here's your rental property info, scroll down to Assets.  Click Edit to the right.
  • At the screen Your Property Assets, click Edit to the right of the rental property that was sold.
  • At the screen Did you stop using this asset in 2021?, click Yes.
  • Continue through the screens, answering the questions about the sale.
  • At the screen Results, you will see Your depreciation deduction for 2021 is $XXX.

1 Replies
Expert Alumni
Feb 23, 2022 5:29:38 PM

If the property is being reported as an asset on the screen Your Property Assets, the partial year depreciation will be calculated when you dispose of the asset.

 

You can access this screen by going to:

  • Federal / Wages & Income /  Your income / Rentals, Royalties and Farm / Rental Properties and Royalties.
  • Click Edit to the right.
  • Click Edit at the screen Your 2021 rentals and royalties summary.
  • At the screen Here's your rental property info, scroll down to Assets.  Click Edit to the right.
  • At the screen Your Property Assets, click Edit to the right of the rental property that was sold.
  • At the screen Did you stop using this asset in 2021?, click Yes.
  • Continue through the screens, answering the questions about the sale.
  • At the screen Results, you will see Your depreciation deduction for 2021 is $XXX.