1099-S Sale of Residential Rental

Are you reporting the rental property as a depreciable asset within the rental activity on Schedule E Supplemental Income and Loss?

If so, in TurboTax Home & Business Desktop, follow these directions for the sale/disposal of a rental property.  

• Across the top of the screen, click on Business.
• Across the top of the screen, click on Business Income and Expenses.
• Select I'll choose what I work on.
• Click to the right of Rentals, Royalties and Farm.
• At the screen Income from Rentals or Royalty Property You Own, select Yes.
• At the screen Rentals and Royalty Summary, click the pencil to the right of the property sold.
• At the screen Review Your Rental Summary, scroll down to Assets, click to the right.
• At the screen Do you want to go directly to your asset summary, click Yes.
• At the screen Your property assets, click Edit to the right of the rental property.
• At the screen Did You Stop Using This Asset in 2024, click Yes.
• Continue through the screens reporting information about the disposal of the asset.

You may find that there will be two sale entries, one for the rental structure and one for the land the structure sits on.  The rental property asset maintains a cost basis for the structure and a cost basis for the land beneath the structure.