skyworks
Level 5

Hi,

Did any had do that?

reporting a rental sale at a gain. According to PCO instruction, entered each asset assocaited to the property as bulk sales (multi-assets), but got an error message as below: 

#3 has a depreciation recapture method (1245, 1250, etc.) that differs from the main asset of the bulk sale in which it is included. For the depreciation recapture to be correctly reported on Form 4797, this asset should be input as a separate sale.

 

(Asset #1. Land,  Asset # 2. Building  - depreciated over 27.5,  Asset# 3. Improvement kitchen - deprecioated over 7 years and took bonus depreciation)

What I have done:

report Asset #3 seperately not as part of Bulk sales asset, then only allocate portion sales proceeds (equal to adjusted basis), so no gain or loss on form 4797 page 1 Part I

 

0 Cheers