There is more than one way to allocate the sales proceeds received for the sale of your rental property. I suggest you allocate the current book value of each asset other than the main structure to those assets, and then allocate the remaining balance to the sale of the main structure/house. This will result in no gain or loss on the sale of the land, and each asset other than the main structure. Any gain or loss will be realized on the "initial" main asset. You could also do it proportionately, and allocate a percentage of the sales proceeds to each asset based on it's percentage of the total of the book value of all the assets combined.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
