Discussion:Sale of rental and its assets
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Discussion Forum Index --> Advanced Tax Questions --> Sale of rental and its assets
Discussion Forum Index --> Tax Questions --> Sale of rental and its assets
Www.cpa1.biz (talk|edits) said: | 28 March 2009 |
| Almanacers,
I am working with a client who sold their rental property. There were about 9 more assets (stove, fridge, fence, etc.) that were added during the years the home was rented. I just wanted to see how you all account for these sales of assets because they are part of the rental home sale. I was thinking about showing the sale of each asset as 0 so if there is any left over basis, it would show as a loss. Then, I will just show the home sale as it is on the HUD-1 plus closing costs minus its adjusted basis. Is this how you all do it. I am using Pro Series. Please advise. Take care, bj | |
Landon5784 (talk|edits) said: | 28 March 2009 |
| I personally wouldn't itemize the sale of a rental house | |
Www.cpa1.biz (talk|edits) said: | 28 March 2009 |
| What would you do then, add the adjusted basis of each assset to the cost of the rental home. | |
Harry Boscoe (talk|edits) said: | 28 March 2009 |
| Based on how often it gets used, that's a very acceptable shortcut. Now, where's the shortcut to the fridge? | |
| March 29, 2009 | |
| Here's what I do:
Enter the sale date on each asset worksheet, with 0 sales price (in your case, all nine asset worksheets). Then, on a sheet of paper, I write down the original cost, current year depreciation, and total prior year depreciation for each asset. Then I add up those amounts and add the totals to the corresponding amounts on the asset worksheet for the house. Then I delete all of the asset worksheets, except for the house. Now I have one asset worksheet with the totals of all the assets combined (original cost, current year deprec, and prior deprec). Then I enter the sales price and closing costs to the house asset worksheet. | |
