Yardley CPA Posted September 27, 2021 Report Share Posted September 27, 2021 I'm having a complete brain freeze this morning. Client sold rental property that was originally purchased in 2005. Sale price was $253,000. Purchase price was $170,000. Land was valued at $100,000 at the time, so $70,000 was depreciated. Entering the information in the Fixed Asset schedule, Disposition tab. How is the land value of $100,000 handled?? Is it included as a basis adjustment? I appreciate any input...I seem to be fogging up on this one. Quote Link to comment Share on other sites More sharing options...
jklcpa Posted September 27, 2021 Report Share Posted September 27, 2021 Allocate the selling price and the expenses of sale to each type of property sold. You will have separate sale entries for the land, the building and its improvements, and any 1245 assets that were on the fixed asset schedule. If I have lots of improvements over years, or have lots of 1245 assets listed, once I have the SP and expense of sale allocation figures, then I do group/bulk sale for each of those types. 4 1 Quote Link to comment Share on other sites More sharing options...
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