depreciation

[kenneth53]

does turbotax premier calculate depreciation recovery tax on sale of a rental property.  also how do i enter the sale of the rental property - turbotax premier treats it as my primary residence  

[PatriciaV]

Yes, TurboTax will include depreciation recapture, as appropriate, when you report the sale of a rental property.

Rental Property sales are entered in two places under Rental Properties.

1. Open your return, search on "schedule e" then click the "jump to schedule e" link.
2. On the Rental and Royalty Summary page, click Edit beside the property you sold.
   (If you didn't report this property last year, you'll need to complete all the interview questions, including setting up the asset(s) for depreciation.)
3. Click Update beside the Property Profile.
4. Under "Situations" (or on the page "Do Any of These Situations Apply?"), click "I sold or disposed of this property." A message will pop up to say you'll enter the details of the sale under the depreciation section.
5. Continue through the screens to the Property Rental Summary page.
6. Click Start/Update beside Sale of Property/Depreciation.
7. Go directly to your asset summary and click Edit beside the rental asset you sold.
8. Continue to the page "Tell Us More About This Rental Asset" and check the box for "The item was sold..." Enter the date of the sale in the pop-up box.
9. Follow the prompts to enter the sale information.
10. Continue back to the Property Summary page. Click Done and answer any follow-up questions.