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How do you take a rental property out of service?

csanchez
Level 3

Taxpayer decided to no longer rent one of their properties. No income for 2020. How do I remove the property from service?

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7 Replies 7
Just-Lisa-Now-
Level 15
Level 15

On the asset entry worksheets for th rental, enter the date of "disposal" but no sales price.  This stops the dep as of that date and takes it out of service.  Print out the depreciation details sheet to save in case it becomes a rental again or gets sold, so you'll have the deprecation information.

 


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
csanchez
Level 3

If I enter 01/01/20 as date of disposal, there is still a small amount of depreciation for 2020. Report it or delete the Sch E?

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IRonMaN
Level 15

If they decided not to rent it it 2020, just delete it.

ACME Taxes, Tatoos, Tires and Tomatoes (I had to get rid of the turtles - they kept running away)
IRonMaN
Level 15

Print the depreciation schedule for future reference and then delete the rental worksheets and depreciation schedules.

ACME Taxes, Tatoos, Tires and Tomatoes (I had to get rid of the turtles - they kept running away)
PATAX
Level 11

Iron Man hit the nail on the head again...

sjrcpa
Level 15

That's much better than the anvil hitting him on  the head again.


ex-AllStar
IRonMaN
Level 15

Absolutely!

ACME Taxes, Tatoos, Tires and Tomatoes (I had to get rid of the turtles - they kept running away)
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