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Complete Disposition of Rental Activity with Multiple Depreciable Assets

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Intuit

Complete Disposition of Rental Activity with Multiple Depreciable Assets

Problem Description

How do I enter a disposition of a rental activity with multiple depreciated assets?

Solution Description

There are several ways to dispose of activities in the program, but for assets reported in the screen,  Depreciation, the easiest way is to enter a sale of multiple assets is as a Bulk Sale.
  1. Go to the Deductions section and then to the screen, Depreciation.
  2. Select the primary asset that is being disposed of (ie: Rental Home).
  3. Scroll down to the General Disposition Information section.
  4. Enter the Date Sold.
  5. Enter the Basis Adjustment (if applicable).
  6. Enter the Expense of sale (if applicable).
  7. Scroll down to the Sale of Asset (4797/6252) section.
  8. Enter the Sales Price (-1=none).  This is the TOTAL sales price for all the assets included in the disposition.
  9. Locate the Miscellaneous subsection.
  10. Enter a 1, or 2 in, 1=Complete Disposition of Passive Activity, 2=partial (triggers 8582).
  11. Select the next Asset that is to be disposed (ie: Land) from the left navigation panel.
  12. Scroll down to General Disposition Information section.
  13. Enter the Date Sold.
  14. Select the main asset from the Bulk sale (multi-asset) disposition: select the asset containing dispositions amount (Ctrl+T) from the drop down menu. Note- Do not enter any sales information on this asset.
  15. Repeat Steps 11-14 for all assets associated with this disposition.

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