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Level 2
posted Feb 7, 2023 3:08:38 PM

How to report in Turbotax the Sellling less than 100% of the Rental Property

I want to thank you all in advice for your help.

 

I know how to report selling 100% of my ownership in a property; however, I am not able to find how to get Turbotax to report only a portion of the property.

 

A owns 75% of four identical rental properties.  B owns the remaining 25% of each of the four properties. 

 

How does A report the sale of 25% of the four properties to B so that both A and B own equally 50% of the four properties? 

 

I can see the steps to report 100% sale just not a less than 100% sale.

 

Regards,

RonT

 

 

0 4 238
4 Replies
Expert Alumni
Feb 7, 2023 5:28:54 PM

You will want to calculate the 25% of the total and enter it in TurboTax.  This way you have records of the transaction since the buyer had an interest and you retained an interest.  Accordingly, you would have to adjust many of the assets on your remaining ownership interest.  

Level 2
Feb 10, 2023 4:42:27 AM

MaryK4, thank you for responding.  Do you make the percentage adjustments in the forms view and would you just change the amounts.  Only have two assets the building and land, so making changes is not hard just how in the software.

 

 

Expert Alumni
Feb 10, 2023 7:08:27 AM

You can create a second asset (building and land are one with two separate cost entries). 

  1. Change your original one to the 50% amount you will retain keeping the same placed in service date.  This will retain the accumulated depreciation as it should.
  2. Make the second asset the 25% (amount you removed from the original asset and sold) and be sure to use the same placed in service date so that the sale accounts for any depreciation portion of the gain (or loss)  on the sale.
  3. Select the second (25%) asset was sold, then follow the prompts to enter your information.  TurboTax will do the rest.

Level 2
Feb 19, 2023 6:53:33 AM

Thank you I will try that and let you know.

 

Regards,