ProConnect HelpIntuit HelpIntuit

Reporting sale of property used as a rental on an Individual return

SOLVEDby IntuitLacerte Tax101Updated July 13, 2022

To report the sale of home used as a rental property whereby the taxpayer did not use as personal property on a Form 1040 return, follow the instructions below for your given scenario.

  1. Navigate to Screen 22, Depreciation.
  2. Select the applicable asset in the Asset box on the left side of the screen.
  3. Select General Disposition Information in the Section box on the left side of the screen.
  4. Enter the date of sale in the field Date sold, disposed, or retired (MANDATORY).
  5. If applicable, enter an adjustment amount in the field Basis adjustment (land, etc.) [A].
  6. Enter sale expenses in the field Expenses of sale or exchange.
  7. Select Sale of Asset (4797/6252) in the Section box on the left side of the screen.
  8. Enter the sales price in the field Sales price (-1=none).

This sale will flow to Form 4797.

  1. Navigate to Screen 17, Dispositions.
  2. Enter the description of property, date acquired, date sold, cost or basis, expense of sale.
  3. Select Form 4797 in the Section box on the left side of the screen.
  4. Enter the appropriate prior depreciation amount in the field Depreciation allowed (-1=none, triggers 4797).
  5. If applicable, enter the appropriate recapture amount in the field Recapture amount (if not section 1245).
  6. If applicable, enter 1 in the field Blank = 1245, 1 = 1250, 2 = 1252, 3 = 1254, 4 = 1255.

Was this helpful?

You must sign in to vote, reply, or post
Lacerte Tax

Sign in for the best experience

Ask questions, get answers, and join our large community of Intuit Accountants users.