Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

SALE OF RENTAL PROPERTY

Highlighted
Level 2

When there is no bill of sale outlining the sale price of each asset sold (refrigerator, washer , dryer, furniture etc).  Should you allocate those assets based on the sale price? Example: Total Sale price: $100,000, items sold: building , refrigerator. Refrigerator on depreciation schedule with a cost basis of $1,500, building on dep. schedule with cost basis of 75,000. So,1,500/76,500 for refrigerator and 75,000/76,500 forbuilding? Selling price of refrigerator is .020*100,000 = 2,000 and building .98*100,000=98,000?

0 Cheers
1 Solution

Accepted Solutions
Highlighted
Level 2

Thank You, yes that makes perfect sense. I was not thinking about a realistic  FMV!! 

View solution in original post

0 Cheers
2 Replies 2
Highlighted
Employee
Employee

You should ask the taxpayer to give you a breakdown of the sale price allocated to the assets, based on the FMV of the assets. Refrigerators generally depreciate, while buildings generally appreciate- so the original cost is probably not helpful. 

Highlighted
Level 2

Thank You, yes that makes perfect sense. I was not thinking about a realistic  FMV!! 

View solution in original post

0 Cheers