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RENTAL SALE & DEPRECTION RECAPTURE

integrity365
Level 2

If I have a rental with several improvement related assets attached to it, is it okay to just put the disposition date with a zero selling price for the attached assets and just split the sale between the land and the house?  What does this do to any depreciation recapture?  And please tell me that PS handles the depreciation recapture based on disposition on the asset worksheet, without me having to manually enter somewhere.

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TaxGuyBill
Level 15

Option #1:  Manually combine things and manually enter it on the 4797.

Option #2:  Allocate the sale price between all of the assets, based on the Fair Market Value of each asset.

Option #3:  Use software other than ProSeries that supports reporting group/bulk sales.

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4 Replies 4
integrity365
Level 2

I guess, I still don't completely understand.  Why would I do it manually on the 4797, when I can do it on the asset worksheet and it will flow to the 4797?  I guess I need a more practical step by step solution on how it would be entered on the 4797 that is different then letting it flow.

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TaxGuyBill
Level 15

Option #1:  Manually combine things and manually enter it on the 4797.

Option #2:  Allocate the sale price between all of the assets, based on the Fair Market Value of each asset.

Option #3:  Use software other than ProSeries that supports reporting group/bulk sales.

View solution in original post

integrity365
Level 2

Okay, great.  So number 2 WILL in fact work. Thank you!

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