How to enter the sale of a rental property (partnership 1065)

[tera]

Hello - I have a partnership client that sold their rental property. I have numerous 8825 asset worksheets. When I click on the main 8825 worksheet and click the box that states "completely disposed of this property in 2025" and also the box "rental is a commercial property". I checked those two boxes and it didn't generate anything. Upon further research, I looked up the form 4797 pg 2. But when I go to tax help, it suggests that the disposition is entered into the asset worksheet. Well, I have about 8 asset entry worksheets every time there was an improvement to the property. I played around with form 4797 by entering a sales price and date of sale in the appropriate boxes but it doesn't pull over any basis amounts or depreciation. I feel like if I were doing this correctly, there would be more flow within the forms. Please help.

[dascpa]

Unless you have Fixed Asset Manager you have to dispose of each asset one by one in ProSeries. Create an Excel worksheet of all the assets, list the cost basis in the first column, the % of the total in the next. Then third column apportion the total sales price and in the final column apportion the cost of sale.

Note, if you know an asset(s) won't have a gain on sale (for example a dishwasher doesn't gain in value over time) then adjust your asset apportionment to what's logical. In the end the total is still the same.

After you have your numbers go back to ProSeries and enter the disposition information in each Asset Worksheet. It will then flow to all the appropriate tax return places.

[tera]

Thank you for your response. I did this and entered the date of disposition, asset sales price (based on percentage of basis/total basis), and the percentage of the cost of sale. 

I am receiving an error: Prior Depreciation Rglr Tax is too large. For disposition calculations, depreciation cannot exceed business basis. 

I don't understand this error. The original basis for this asset is 22,628. The amount of sale (again, based on the percentage of this asset basis) is 39,423 and the PY depreciation is 9,304. Am I reading that error wrong?

[tera]

Also, in addition to my question about the new error. What do I fill out for "additional depreciation after 1975" and the percentage with that? It is making me enter something. This property was placed into service in 2008 and has had depreciation since then, obviously.

[IntuitSusanY1]

If any of the assets you're disposing used bonus depreciation or Section 179 depreciation, try entering a 0 for the prior year depreciation.  

This should resolve the issue you're experiencing and calculate the disposition correctly.  

[EDITED 04/12/2026 3:30 PDT]

[sjrcpa]

????

that's not what that depreciation after 1975 field is for.

[tera]

here was not any special depreciation.

[tera]

What is that field for then? I have to put something in there.

[TaxGuyBill]

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@tera wrote:

What do I fill out for "additional depreciation after 1975" 

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"Additional Depreciation" refers to accelerated depreciation (depreciation in excess of straight-line).  If you only used Straight-Line depreciation, that line will be $0.

[sjrcpa]

@IntuitSusanY1 

FYI - the generally accepted practice when editing posts here is to leave the original and strike through what you're changing. 

Those following along are then able to follow along.

Not an Intuit Susan and not a Tax Expert.

[sjrcpa]

@TaxGuyBill  I don't even know why that line is still around. Seems it hasn't been applicable since the old ACRS 15 or 19 year lives for real property.

[TaxGuyBill]

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@sjrcpa wrote:

@TaxGuyBill  I don't even know why that line is still around. Seems it hasn't been applicable since the old ACRS 15 or 19 year lives for real property.

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Qualified Improvement Property gets Bonus.  And prior to that, some of the other odd Bonus depreciation things for Restaurants and whatever else there was.  And maybe some other stuff.  And now the Bonus depreciation on building Factories (whatever that new provision is).

[sjrcpa]

As usual, you're right.

[tera]

There wasn't any special depreciation taken earlier so I don't think any of these comments help my issue. I can put zero for prior year depreciation but that isn't true. 

[TaxGuyBill]

Is the business percentage 100%?  Has it always been 100%?

[tera]

Yes. 

I also want to note that when I pull the Depreciation and Amortization report, both columns for Section 179 and Special Depreciation show $0.

[TaxGuyBill]

Sorry, I'm puzzled.  Usually the problem is drop in business percentage.

Have you tried creating a new Asset Entry Worksheet with all of the same information and trying to enter the sale (and if it works, delete the old Asset Entry Worksheet)?