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Rental property

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Level 2

I have a client who purchased rental property in 2009 which included 3 units.  She sold one of the units this year.  The Sch E has been set up as Various for the properties none of which were entered separately so when I started doing the taxes I followed suit.  The Asset worksheets have each property with units tied to that property so the total of the cost used for taxes is for all three units.  Need some advice on how to separate the one sold from the other two.

Thanks

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5 Replies 5
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Level 15
Level 15
Are all three units similar in size? Or are they completely different?

If they could be sold individually they were probably purchased individually, do you have the original closing docs from the purchase in 2009?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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Level 2

Yes I have the original purchase documents and they are all about the same size

 

Thanks

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Level 15
Level 15

So the original purchase documents show it all as 1 purchase?  it doesnt break them down into individual units?   

If it was just one purchase price and If they are all the same size, with the same amenities, you may have to split everything in 3rds and create new asset entries for each unit like it should have had done initially.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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Level 2
So what I do is split the basis and the accumulated depreciation into third and set up asset worksheet for each unit. I always thought that it should have been separate but it had been done that way in the paat and did not want to raise any red flags by changing it
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Level 2

In relation to same question this same client has another property with two units I should split those too in case there is another sale?  Also should I go ahead and list each of the properties separate she has 3 other single rentals that was all listed under various.

 

Thanks

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