Selling rental property - related assets

[gborn]

hi, I sold a rental property in 2023. 

The property is in the "Your Property Assets" screen and I edited it to say that it was sold and entered the sales information (date, sale price, sales cost).

In prior years, I had added in the "Your Property Assets"  screen, some of the "major improvements" as instructed on the page.   How does the cost of these associated improvements get added to the cost basis for the property to reduce my capital gain?  Do I need to edit these assets as well to note that they were "sold"?  They were included in the sale of the overall building, so there is no separate sales price.

Also, I received a 1099-S for the sale from the title agency that includes the Tax ID for the single member LLC that owns it.  I can't find a place to enter that in TurboTax.  Do I need to and if so, how?  Want to make sure it's not double counted since it's being edited to reflect the sale in the Your Property Assets as mentioned above.

thanks!

[tagteam]

If you used TurboTax when you entered the cost of the improvements, you can simply indicate that you sold them for a marginal amount (like $1) in order to remove them from the asset list.

[gborn]

Thanks for replying,  tagteam Level 15.

If I enter sales price of $1 for these "improvements" assets wouldn't that create additional capital gains of the difference between that and the depreciated cost? 

To reiterate, the overall building was sold and I'm just looking to confirm how  the cost basis is updated to reflect the additional cost of these "improvements" assets.

[tagteam]

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@gborn wrote:

.....I'm just looking to confirm how  the cost basis is updated to reflect the additional cost of these "improvements" assets.

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Weren't the improvements added as assets in the program when they were made? If so, they should have been subject to depreciation deductions.

[gborn]

Yes, some of the improvements were added, but only partially depreciated.  What about the remaining value that's left after depreciation.  Should I be following the guidance here to allocate the sales price across all assets: https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/what-do-i-do-with-imp... 

Also, how do I handle the 1099-S?

thx

[tagteam]

The 1099-S is not relevant; just enter the sales price.

[tagteam]

That guidance in your last post will work.