Get your taxes done using TurboTax

when the property is sold you would need to allocate a portion of the sale price and sales expenses to these assets based on their relative Fair Market Value on the date of sale.  if the sales price less selling expenses is more than the remaining tax basis there is depreciation recapture. if you discard the item FMV = $0 so there is nothing to allocate and the asset should be deleted.

 

no, you can't add the cost of washers, furniture, etc to the cost of the building.  these assets are in a different depreciation class.

 

 

 

 

View solution in original post