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Level 4
March 24, 2023
Question

sale of residential rental income

  • March 24, 2023
  • 2 replies
  • 13 views

I have been trying to figure out a sale of residential rental income for over 3 hours now.  can someone guide me through this process? Have used the schedule e for many years, reporting income and expenses, my question is since he has sold it in 2022 i read that i should put that information on asset entry worksheet, does this mean a separate worksheet other than the one i started for him when he first bought the building?  or use the same one i put the information on page 2 under dispositions with sale price of asset and expense of sale.

 Second question is when i did that machine said i have too much depreciation which i do not understand this should be simple thing to do.  he paid 101,411 for building, in 2012, sold it for 165,000 expense of sale was $15,500 current depreciation is $3954 and prior depreciation shows $40,259. this is from figures from form 4562. 

I know I am asking a lot and getting burnt out  any suggestions would be helpful.

thank you, God Bless

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2 replies

Level 15
March 24, 2023

Use the same Asset Entry Worksheet that you have been using, and use the Disposition section near the bottom.

Is the current year 100% business use?  If not, why did you enter less than 100% business use?

dkh
Level 15
March 24, 2023

Also, you still enter 2022 rental income and expenses on the Schedule E  just as you would any other year.