Investors & landlords

@DianeW777 

Good evening Diane,

I think I am slowly going in the correct directly.  I could never have come this far with your dedicated help!  Thank you so much for this!

I’ve tried to break down the discussion by Property.  Hopefully it makes all of the details easier to digest and follow.

Replacement Property 1:  Oil and Gas

1. Please confirm the following are true:
1. Should only be apportioned land from the original property – a portion of the $62,000. 
2. The land size will be calculated by taking the total square footage of the land across all co-owners, and multiplying it by my percentage of ownership of the land value.  Hopefully that is ok?  If not, the Oil and Gas property would end up with 99% of the $62,000 due to its size – being 1,000’s of acres versus 5 or 10 like the other properties.
3. The portion is based on the land size of the Oil and Gas property as it is compared to the land total across all replacement properties.
4. The Asset’s basis value from the original property ($90,000) does NOT get portioned to the Oil and Gas property.
5. The Assets basis value from the replacement properties ($118,000) does NOT get portioned to the Oil and Gas property.
6. Any Land value from the $118,000 should NOT be proportioned to the Oil and Gas property.  I’m not as sure about this statement.
2. How do you apportion the $62,000 to the Oil and Gas property using TurboTax Premier?  Can you please provide the pathway to where this value can be entered using the Step-by-Step guide?  I’m currently following this path, but it does not seem correct, as it is depreciating the value I populate as the “Cost”…and land should not be depreciated.  “Assets/Depreciation” TO “Your Property Assets” (choose “Add an Asset”) TO “Describe this Asset” (choose “Rental Real Estate Property”) TO “Tell us a Little More About Your Rental Asset” (choose “Land Improvement”) TO “Tell us about this Rental Asset” (populate “Cost” and “Date purchased or acquired”).
3. I then populate the “Excess Basis Amount” on the following screen (“Tell us more about this rental Asset”), with these fields check marked:  “I traded in an old asset to acquire this one” and “I purchased this asset”.  This may also be an error, if the path above is incorrect.

Replacement Properties 2 & 3:  Ford Distro Center and Senior Living Center

1. Please confirm the following are true:
1. Both properties should be apportioned land from the original property – along with the Oil and Gas property– a portion of the $62,000.
2. The Asset’s basis value from the original property ($90,000) DOES get portioned between the 2 properties.  The proportioning calculation does NOT include the Oil and Gas property.  Therefore, the total cost that drives the apportioning of the $90,000 only includes Properties 2 and 3.
3. The Assets basis value from the replacement properties ($118,000) DOES get portioned between the 2 properties.  The proportioning does NOT include the Oil and Gas property.  Therefore, the total cost that drives the apportioning of the $118,000 only includes Properties 2 and 3.
4. Any Land value from the $118,000 should be based on the Land Cost as it compares to the total cost of either Property 2 or 3.  For example, if the Land Cost of the Senior Living Center (Property 3) was only 5% of the total $250,000 cost for that property, the Land value would equal 5% of Property 3’s portion of the $118,000.
2. When entering Properties 2 & 3 as Assets, the path to populate both the Asset cost and the Land cost seems more intuitive.  One you select “Rental Real Estate Property”, followed by “Residential Rental Real Estate” (where before I picked “Land Improvements” for the Oil and Gas property), you are able to populate the total cost of the property under “Cost”, and then the land portion of the total cost under “Cost of Land”.  Please confirm this is the correct location.

Your comments would be so greatly appreciated!

Thanks,

Jamie