Loss not calculating properly for sale of business asset on Form 4797

[sld21]

I replaced my undepreciated HVAC system on rental property that was being depreciated over 27.5 years.  I entered the information as to date sold and zero dollars on sale - the Asset Worksheet calculated a loss and the loss did not carryover to Form 4797 - the Form is showing zero dollars for the loss.

[Anonymous_]

I cannot reproduce the result you are seeing (i.e., the loss appears on Form 4797).

Where in the program are you entering the "sale"?

[Mike9241]

it's not clear why the old HVAC is undepreciated if it is listed as a separate asset or was it included in the original purchase price of the property?

[sld21]

Since it's an asset associated with a rental property - which flows through to a Schedule E, the information was entered on the Asset Entry Worksheet, which reflected a loss on Line 31 of $1,766.  The following information flowed from the Asset Worksheet to Form 4797 Part 1 - Line 2 - (a) Description of property; (b) Date Acquired; (c) Date Sold (technically system was replaced); (d) Gross Sale Price (zero came through); (e) Depreciation allowed or allowed since acquisition ($1,164); (f) Cost or other basis ($2,930) and (g) Gain or (Loss) Subtract (f) from the sum of (d) and (e) ($0 is what TurboTax entered) - the loss of $1,766 did not flowthrough.

[sld21]

It was a separate Asset - as it was not the original HVAC system purchased with the house, but replaced the system 10 years ago in 2010 and then this system had to be replaced in 2021 - since tax law required it to be depreciated over the life of the rental property - it had an undepreciated value remaning at the time of replacement and based upon my understanding this is a loss that should have come through on Form 4797 after entering the 'Sale' (replacement) information on the Asset Worksheet.

[Anonymous_]

Why did you not simply indicate it was sold in the Rentals section? 

I presume it was already entered as an asset in that section, was it not?

[sld21]

I did enter the asset as sold in the Asset Entry Worksheet and it calculated a loss of $1,766 - this loss did not flow through to Form 4797 - as noted in my more detailed response above.  If I override the amount calculated on Form 4797 and enter the correct amount of the loss, TurboTax indicated I will not be able to file electronically.

[Anonymous_]

I meant the Rental Properties and Royalties section of the program.

[sld21]

I tried that - that section is only for Business or Rental Property that met several criteria- one being that "You sold it for a profit" which I did not- I had a loss, so it wipes out the entry.