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Where do I enter real estate sale proceeds in Turbo tax business for LLC 1065?

1) I sold my rental property and using TT Business on my computer for LLC 1065. I selected short year, Final return, and Bought or Sold business. However, I don't know how to enter the sell p rice, accumulated depreciation and the purchase price.
Please give step by step instructions how to Compleat the return, 
2) I sold my property in January 2023; I noticed that TT set the due date to April 2023. Should that be April 2024.
Thanks  

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Accepted Solutions
PatriciaV
Employee Tax Expert

Where do I enter real estate sale proceeds in Turbo tax business for LLC 1065?

How you report this sale depends how you have been reporting the LLC activity since the company was formed. If you formed the LLC in 2023, purchased and sold the property in the same year, then dissolved the LLC, you have started in the correct manner.

 

However, if you formed the LLC in prior year, you should have filed a previous tax return. Most of the information you need will be included in the forms and worksheets from that return.

 

TurboTax is a user-friendly, interview-based program that will walk you through all areas of your business return and provide an accurate return based on your entries. Look for blue "Learn More" links on most pages if you need help. Or use the Search box to find a particular topic. Most taxpayers are able to complete their returns without much assistance. If you would prefer to have the attention of a Tax Expert as you complete your return, consider upgrading to TurboTax Live

 

  1. Assuming this is a real estate transaction (not the purchase/sale of rental real estate), go to Federal Taxes >> Income >> Dispose of Business Property.
  2. You must first add the asset, with the date of purchase and business use (usually 100%).
  3. Choose "other" as the type of asset, then whatever type of real estate you sold.
  4. Enter the total purchase price and the portion of the purchase price that was for the land (if any).
  5. If you purchased the property in 2023, the asset is not eligible for deprecation. Otherwise, you'll be asked to confirm the accumulated depreciation.
    (If you have previously reported this property and have accumulated depreciation, you will need the depreciation report from the prior year.)

 

  1. Now work on the sale of the disposed asset (click Edit from the list of assets).
  2. Check the box for the disposal type - probably a sale.
  3. Complete the sale information. separated by building and land (sale price and selling costs).
  4. TurboTax will provide a summary of the sale outcome (gain or loss).

Since you are filing tax year 2023 return, the due date for filing is April 15, 2024.

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View solution in original post

PatriciaV
Employee Tax Expert

Where do I enter real estate sale proceeds in Turbo tax business for LLC 1065?

If this is Rental Real Estate, enter the disposition only under the Rental Real Estate Income topic.

 

You can remove the entry under Dispose of Business Property (which is for sales other than rental real estate).

  1. Click Update beside Dispose of Business Property.
  2. Click Delete beside the sale you need to remove and confirm.
  3. Click Done to return to your income summary.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

4 Replies
PatriciaV
Employee Tax Expert

Where do I enter real estate sale proceeds in Turbo tax business for LLC 1065?

How you report this sale depends how you have been reporting the LLC activity since the company was formed. If you formed the LLC in 2023, purchased and sold the property in the same year, then dissolved the LLC, you have started in the correct manner.

 

However, if you formed the LLC in prior year, you should have filed a previous tax return. Most of the information you need will be included in the forms and worksheets from that return.

 

TurboTax is a user-friendly, interview-based program that will walk you through all areas of your business return and provide an accurate return based on your entries. Look for blue "Learn More" links on most pages if you need help. Or use the Search box to find a particular topic. Most taxpayers are able to complete their returns without much assistance. If you would prefer to have the attention of a Tax Expert as you complete your return, consider upgrading to TurboTax Live

 

  1. Assuming this is a real estate transaction (not the purchase/sale of rental real estate), go to Federal Taxes >> Income >> Dispose of Business Property.
  2. You must first add the asset, with the date of purchase and business use (usually 100%).
  3. Choose "other" as the type of asset, then whatever type of real estate you sold.
  4. Enter the total purchase price and the portion of the purchase price that was for the land (if any).
  5. If you purchased the property in 2023, the asset is not eligible for deprecation. Otherwise, you'll be asked to confirm the accumulated depreciation.
    (If you have previously reported this property and have accumulated depreciation, you will need the depreciation report from the prior year.)

 

  1. Now work on the sale of the disposed asset (click Edit from the list of assets).
  2. Check the box for the disposal type - probably a sale.
  3. Complete the sale information. separated by building and land (sale price and selling costs).
  4. TurboTax will provide a summary of the sale outcome (gain or loss).

Since you are filing tax year 2023 return, the due date for filing is April 15, 2024.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Where do I enter real estate sale proceeds in Turbo tax business for LLC 1065?

Thank you for your answer. However, after entering all the new assets, TT ask me to the top of the page under Real Estate Income, >>Rental real estate disposition, where all my assets are listed from last year return. If I do that, TT will display the same profit twice. so my question where I should enter the profit. 

             Screenshot TT Income.png

PatriciaV
Employee Tax Expert

Where do I enter real estate sale proceeds in Turbo tax business for LLC 1065?

If this is Rental Real Estate, enter the disposition only under the Rental Real Estate Income topic.

 

You can remove the entry under Dispose of Business Property (which is for sales other than rental real estate).

  1. Click Update beside Dispose of Business Property.
  2. Click Delete beside the sale you need to remove and confirm.
  3. Click Done to return to your income summary.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Where do I enter real estate sale proceeds in Turbo tax business for LLC 1065?

Thanks

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