Entering a partially owned rental property sold in 2020

[GratefulDead77]

My wife has a one third share of an inherited rental property, since 2011.  I know this is wrong, but her brother paid all the taxes on the property on his own return through 2019.  The property was sold in August of 2020 after the last renter left at the end of March.  There were repairs and costs of sale.  I know that I should enter our share of rental income and expenses under "Rental Properties and Royalties"  Where should I enter the details of the sale?  Can all of this be entered in Rental Properties and Royalties or do I have to go elsewhere in Turbotax to do the sale?

I believed  that I could do all of this in RP&R, but the Form 4797 had a problem with the contents of line 32 not matching line 6.  After hours on the phone with Intuit support, I was told to enter the sale as investment income, essentially like a stock sale without the a 1099-B.  There are inherent issues with this approach since there is no dialog for depreciation with a stock sale.  There is dialog for depreciation (and for that matter the ability to enter a sale with expenses in detail) using the RP&R dialog.

So folks, I could use some help with how to enter the sale of the property.

[ErnieS0]

You should not enter this as an investment sale. Doing it that way will not close out the rental property and may lead to incorrect calculations.

• Go to assets in your rental property.
• Edit your property.
• Continue until you see Tell Us More About This Rental Asset
• Check the box The item was sold, retired, destroyed, disposed of, converted to personal use...
• Enter the date of sale
• TurboTax will walk you through the sale questions

[GratefulDead77]

I have now done this and it has mostly worked.  Thanks for the help.  The issue now is with Form 4797 line 6.  Instead of taking the value from Line 32 Section III Form 4797 it is adding taking Line 32 and adding Line 2 (land gain) and then adding land gain again on line 7.  I think this is a bug that I may need to manually correct when I'm completely done with everything else.  What do you think?

[AmyC]

The program separates house from land since that is how a house is depreciated- no land value. You have to mark the sale as house and land so the program can calculate each. Yes, move the numbers about so that the end result is correct in your return. You just want to be able to show the number on your return matches reality if the IRS were to ever ask.