Sofia
Level 1

My client sold a Rental Property on 12/02/2020. The adjusted basis (purchase price + Improvements - Depreciation taken and allowed) =$327,500 (both building and land). The FMV at time of conversion was $240,000 (both  building and land). He depreciated the FMV of the building.  The depreciation taken was  $57,500 (years 2010-2019).

There are 2 basis:

the adjusted basis = $327,500

the converted basis = $200,000

He sold the property for Gross Amount = $319,000

Net Sales Amount after subtracting commission and expenses of Sale = $300,000

How do I report no gain and no loss in ProSeries?

Additional Questons:

Client did not rent the property in 2020 due to traveling distance, repairs being done and COVID. The client did not use the property in 2020 at all.

Do I report 0 rental days used and 0 personal days used? Can the client claim any expenses for the Rental in 2020 on Schedule E, such as Insurance, Property Tax, Mortgage Interest, Depreciation, etc?

If not, do I then report Mortgage Interest and Property Tax on Schedule A?

Any insight will be appreciated. Thank you, SILVIA

 

 

 

 

 

 

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