They are not treated as one. You do need to allocate a selling price to all assets that are part of the sale. The word amortization can be misinterpreted. If you are referring to each asset that was placed on depreciation then follow the steps below.
If you do have amortization for refinance loan fees as example, this will be handled differently. Update this thread with the information if this applies to you. If you do not have this you can disregard.
Please use the example below for all assets listed on depreciation for the rental property sold.
The selling price should be prorated for each asset then entered for each asset when you indicate they were sold or disposed of. You will not lose the remaining depreciation because you will use the remaining basis against the selling price to determine gain or loss.
To figure out the selling price for each asset:
- Take the current basis of each asset against the total combined basis of all of your assets to figure out the sales price for each one; OR
- Determine a fair market value for each asset against the total value of all assets to figure out the sale price for each one.
Use the original cost of each asset listed on depreciation, add those together then divide each one by the combined total to find the percentage of the cost for each asset. Use that percentage times the sales price and sales expenses to find the selling price/sales expenses for each asset.
Example: Original Cost (of each asset on your depreciation schedule)
$10,000 Land = 13.33%
$50,000 House = 66.67%
$15,000 Improvements = 20%
$75,000 Total = 100%
Multiply each percentage times the sales price/sales expenses to arrive at each individual sales price/sales expense.
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