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@Sofia wrote:

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

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.

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The 1099-S will probably show $319,000 so you need to use that amount, as well as the amount of the depreciation.  A common way of doing is to 'make up' a Basis for reporting it.  The 'made up' Basis would be $319,000 plus the total amount of depreciation.  The result will be $0 gain/loss.

You may be able to enter it on the Asset Entry Worksheet.  There is a spot somewhere in the disposition area for 'Basis if different'.  If it is not working well there, you can just enter the sale date and leave the sale price BLANK.  Then manually enter the $319,000, total depreciation, and the 'made up' Basis on the "Enterable 4797".

A possible alternative would be to report the sale as it actually happened (using actual Basis) which would show a loss.  Then add a secondary sale using 'made up' numbers to show an equal amount of gain, resulting in a 'net' of $0 gain/loss.   Personally, I would go with the previous option, but either way should work.

Because there was no personal use and from what you said it seems like the intent was to keep it as a rental, personally, I would keep it listed as a rental.  The program might give errors if you enter 0 rental days, but if you enter 15 rental days it would get rid of the errors.  It is not ideal, but that is what I would do.  CAGMC.

If there is reason to believe it was not intended to be a rental, and was converted to personal use or just to a non-rental 'investment' property, then the treatment would be different.