How do you report the sale of commercial property where 1 unit of 3 was sold, and the remaining 2 were retained?

[TaxMonkey · Accepted solution]

Gross proceeds less 1/3 of the basis, assuming all of the units are substantially equal.

[TaxGuyBill]

Assuming all three units are the same ...

1. Create a new asset using the original "placed in service" date with 1/3 of the Basis and 1/3 of the Prior Depreciation.
2. Create a new asset using the original "placed in service" date with 2/3 of the Basis and 2/3 of the Prior Depreciation.
3. Delete old asset.
4. Enter sales information in the new asset that has the 1/3 of the Basis and Prior Depreciation.