sale of residential rental property in 2022

[toofan1]

Should i show the cost of land of my rental residential property separately  from the building when i sell it and have to do form 4797? Which section of Turbotax address the sale of the property? Depreciation section or sale of other business property?

[leeloo · Accepted solution]

There are various screens in the rental section that deal with the sale. You need to indicate that there was a sale, when it was sold and what the usage was prior to the sale. You will be asked the basis of the property  and you will need to separate out the land at that point. Both the land and buidling will be entered on seperate sections of Form 4797, but only the building is subject to depreciation. 

You will also be asked to separate the land on another screen to reflect its value at the time of sale. You could have a gain on both land and building or a gain on one and loss on the other. You will need to get as as close an estimate of the building value and land value as you can.

Just enter the information where asked, and it will be transferred to Form 4797.

[toofan1]

Thank you so much. I also have a question about the gain that was reported on the sale of this rental residential property that I maintained as rental for 10 years. I also have two other rental properties. One of them has a and the other one has accumulated passive losses carry over from previous years and had a loss in 2022.
I noticed that Turbo tax has offset the entire passive losses for the sold property and the other property with the loss was offset against capital gain on the sale of the rental.
That does not make sense to me. I guess I missed something. Plus, I also have passive activity losses for two rentals (the sold one and the other one) that was more than 3,000 and was carried to 1040 form.
Unless there is change that I am not aware of, that does not make sense to me. I need some help from people that are familiar with turbo tax that I am!

[toofan1]

Thank you so much. I also have a question about the gain that was reported on the sale of this rental residential property that I maintained as rental for 10 years. I also have two other rental properties. One of them has a and the other one has accumulated passive losses carry over from previous years and had a loss in 2022.
I noticed that Turbo tax has offset the entire passive losses for the sold property and the other property with the loss was offset against capital gain on the sale of the rental.
That does not make sense to me. I guess I missed something. Plus, I also have passive activity losses for two rentals (the sold one and the other one) that was more than 3,000 and was carried to 1040 form.
Unless there is change that I am not aware of, that does not make sense to me. I need some help from people that are familiar with turbo tax that I am!