Please see the answers to your questions below.
- Yes, essentially you can leave this asset in tact and just change the name of it. It can continue as is with the same original acquired date and remaining basis continuing the depreciation as though there was no trade. You can choose to allocate it to the three properties making three assets by dividing the $90,000 by 3 and set up each one for each property.
- Yes, the additional basis of $118,000 should be allocated to each of the three properties as a new asset with a date placed in service as the trade date.
- Yes. One asset with the original date acquired and prior depreciation and one new asset with the new date, starting the recovery and depreciation from the trade date.
- For each building/property: You will enter two assets one with the portion of the $90,000 and one with the portion of the $118,000. Use the percentage of land and enter that on each property.
- Yes, that is correct.
- As long as you have made what you consider to be the appropriate portions,, setting up two the assets as instructed above, there should be no errors.
- See number 6.
- You should have two assets (see 1 & 2 above) for each property with the exception of the oil & gas property since there is no building and only land. You would have a portion of the land from the original building and there would be no actual asset listed for the property. You must keep track of the land you apportioned to this property in your records.
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