How to report rental property sale by TurboTax At Rental Property->Depreciation - Is there a step-by-step instruction ?

[jameszhjw]

I owned a rental property for 10+ years and it had been rental property throughout the years.

I started the selling process from the end of 2018 and it got sold in Spring 2019. There was no rent collected since 1/1/2019 as it's in the sale process. 

TurboTax instructed me to report rental property sale at "Rental Property section -> Depreciation part".  When I went thru the process there, I did not see any field to utilize the info from my "purchase closing data", "CA tax withdrawn tax data" or "Fed 1099-S".   It only asked me the "sale price" and "expense" at one of the asset depreciation pages.  Not sure how to input the full info of the sale data?

Is there any step by step instruction based on TurboTax home&Biz -> Rental property->Depreciation?  It's best showing the screenshots what I should select and input, so that I can make the right selections and inputs?

Thanks!

[jameszhjw]

I started the selling process from the end of 2018 and it got sold in Spring 2019. There was no rent collected since 1/1/2019 as it's in the sale process. 

TurboTax instructed me to report rental property sale at "Rental Property section -> Depreciation part".  When I went thru the process there, I did not see any field to utilize the info from my "purchase closing data", "CA tax withdrawn tax data" or "Fed 1099-S".   It only asked me the "sale price" and "expense" at one of the asset depreciation pages.  Not sure how to input the full info of the sale data?

Is there any step by step instruction based on TurboTax home&Biz -> Rental property->Depreciation?  It's best showing the screenshots what I should select and input, so that I can make the right selections and inputs?

Thanks!

[AmyC]

1. Open up your program for this year.
2. Go to your rental
3. Edit/Revisit/Update
4. Rental and Royalty Summary screen
5. Click Edit next to your property
6. In property profile, continue through to Do Any of These Situations Apply to This Property?
7. Mark that you sold the property and click continue until you get back to Review your Rental Summary
8. 
9. Look down to Sale of Property/Depreciation, select Update
10. Do you want to go directly  to your asset summary?
11. Select yes
12. Your property assets screen
13. you may have several things listed here, each needs to be disposed of. Let's work on the house. Select Edit 
14. Describe - rental real estate property, continue
15. Tell us more - residential rental real estate, continue
16. Tell us about this rental asset:
17. description - whatever you have had in there for years, continue
18. Tell Us More About This Rental Asset
19. Mark that the item was sold and the date
20. Then mark if it was always business and the date
21. continue

1. Confirm prior year depreciation and  continue
2. Special Handling Required?  If it was your main home that was converted to a rental, you have all of the depreciation correct, enter NO. If it was always a rental, enter NO. Otherwise, when you answer yes, you go to different areas of the program depending on your situation and you will need to respond with your special situation.
3. Home Sale, answer NO
4. Enter Sales Information- Split 1099S between house and land sales price
5. Enter sales expenses plus any costs while up for sale not on sch E

[jameszhjw]

Thanks for the instruction.  For step 13 "you may have several things listed here, each needs to be disposed of. Let's work on the house. Select Edit ":  

How to dispose other items?  say, I have loan points there, and what's the step to dispose it?  I tried to mark it as "stop use in 2019", but the depreciation/deduction result showed no difference from the previous years.

Thanks.

[AmyC]

Yes, each item needs to be disposed of. If the points were already fully depreciated, there would not be a change. Items still being depreciated, should show some difference.

[jameszhjw]

How to select and input to dispose them (say, the points)?

Do you have the similar step by step instruction towards the main house asset item? 

The loan points were amortized for 30 years, and so definitely they are not fully depreciated yet. 

but not sure if I select/input anything wrong, so that it's not disposed, but continued being depreciated annually as usual... Thanks.

[DavidD66]

For the points which are not fully amortized, and any other asset that is not fully depreciated or amortized (e.g. the land) and allocate a portion of the sales proceeds equal to the remaining un-amortized value of the asset, and dispose of it for that amount.  This will result in no gain or loss or loss on those assets, and will reduce your proceeds allocated to the building.

[jameszhjw]

Understood the result impact as you explained.  My question is HOW to dispose it and make the un-depreciated portion to be deducted at one time as disposal?

Could you please help with the step by step operation instruction, better with screenshot showing the selection/input, to show how the loan points should be disposed for the property sale year in 2019?

Thanks!

[ThomasM125]

If you assigned a price to the assets that you sold, you would enter that as the sale price of the assets. Otherwise, it would be allowable to enter the sale amount as an amount equal to the basis of the assets (cost less depreciation.)

[daurched]

where can I found this information to send to cx 

[heisingerm]

Amy

Navigated successfully thru step 8, but can't seem to find step 9 of your last guidance as fols:

1. Look down to Sale of Property/Depreciation, select Update

[heisingerm]

below step don't appear/isn't an option on my Intuit Screen:  Pls help me

1. Do you want to go directly  to your asset summary?

[pcmaloney]

Hi Amy,

I'm trying to follow these steps for my 2021 return but when I get to your last step - "Sales Information" - I don't have those 4 entry boxes where you can break out Asset Sales Price and Expenses and Land Sales Price and Expenses separately.  I only have 2 entry boxes, one for Sale Price and one for Sale Expenses.  Is that because I am using TT Premier and not TT Home and Office? 

In any event, for Sales Price do I enter the full sales price which included the land ($485,000) or can I apply the same percentage breakdown for the house (i.e. "Structural Improvements") as is listed on the county property tax bill which is .634, making the Sales Price $307,567? ($485,000 X .634)

[Pablo77]

I have the same issue. I'm not sure how to get the numbers to enter in these 4 boxes. Can someone advise?

[BruceKelsey]

I am having similar problems entering original cost of rental house and land purchased 40 years ago and improvements made and depreciated at different lives.  

[TCKB]

I am having the same issue. Can't find where to list land value separate from structure value. it only offers total sales price minus sale expenses.