general guidance on entering the sales price of the furnishings and fixtures sold. the sales price you allocate to them is their Fair Market value on the date of sale. most of these types of assets do not appreciate over time. they depreciate - used property. so you have to use your best estimate for these. my own opinion is that these values would be what the value would be if donated to charity.
whatever amount you allocate to the furnishings subtracts from the sales price allocated to the building and land.
does it make a difference if the allocation between the real property and the furnishings is changed?
it may. gain on sale of furnishings to the extent of depreciation taken is section 1245 gain - tax at ordinary income rates. gain on sale if real property to the extent of depreciation taken is section 1250 gin. 1250 gain may get a more favorable tax treatment than 1245 gain. the maximum tax rate on 1250 gain is 25% or less if you are in a lower tax bracket. the maximum rate on 1245 gain is the marginal tax bracket you are in which could be 37% or more.
the only way to know is to change the allocations and see what that does to your federal and state tax liabilities. however, the IRS does require that the allocations be realistic so you can't artificially allocate to minimize your taxes.
