Investors & landlords

@DianeW777 

Good evening Diane, 

Once again, thank you for your input and your patience!

I do have a few more questions/ confirmations (in terms of going in the right direction):

1. It seems odd to me why the Original Basis ($90,000) identified in the Sale of Business Property section is not used when populating the Cost field in the asset depreciation section for the respective replacement properties.  I've seen several references by the TurboTax Community to do so, and in some cases people seem to combine the Original Basis with any Additional Basis to have 1 asset depreciation entry versus 2.
2. However, I went ahead and apportioned the original Sales Price ($310,000), Asset Value ($248,000) and Land Value ($62,000) between the 3 replacement properties - using the same apportion % calculated for that property across the Sales Price, Asset Value, and Land Value.  For example, in the case of the Senior Living Center, when I took its FMV and divided it by the total FMV across all 3 replacement properties, it came to about 18%.  This translated into the following:
   1. 18% * Sales Price $310,000 = $55,800; populated in the Cost field of the Original Basis entry under Asset Depreciation.
   2. 18% * Land Value $62,000 = $11,160; populated in the Land field in the same section.
      1. Please note, to try to simplify things, in using the 18% to drive the land value, I did not factor in what percentage the land value really is as a percentage of the FMV of the Senior Living Center.  I honestly don't even know what that calculation would look like.
   3. With these 2 values, TurboTax would have calculated the apportioned Asset Value as $44,640, which is 18% of the original Asset Value of $248,000
   4. TurboTax then calculated the Prior Depreciation as about $28,000, which is within a couple $100 dollars of 18% of the original properties Prior Deprecation (18% * $158,000 = $28,440).  So it seems like TurboTax is now calculating this value correctly.  Do you agree?
3. Now comes to the Ford Distr Center, I did the same exercise as above but consistently using 54% (as its apportion percentage) to drive the various values.
   1. 54% * Sales Price $310,000 = $167,400
   2. 54% * Land Value $62,000 = $33,480
   3. TurboTax would have calculated the apportioned Asset Value as $133,920.
   4. Now comes the discrepancy, probably dealing with the 39 year depreciation schedule.  TurboTax calculated the Prior Depreciation as about $60,000.  However, in using the same 54% against the original Prior Depreciation of $158,000 I am calculating about $86,000.  Is this where you are advising that I override the $60,000 value with the $86,000 value to prevent excess depreciation?  Please confirm.
4. In respect to the Oil and Gas property, which is using depletion for mineral rights versus asset depreciation, its apportion percentage is about 28%.  Even though I am not doing any type of asset depreciation in TurboTax, I still need to preserve the following (outside of TurboTax):
   1. 28% * Sales Price $310,000 = $86,800
   2. Land Value = Seeing this property doesn't have land (only minerals), do I have to pass on the $17,360 (28% * 62,000) to the other 2 properties?  If yes, how would I divide that out?  And by doing so, it will cause each property's remaining original basis to drop, right?  But maybe that is the right thing to happen?
   3. 28% * Asset Value $248,000 = $69,440.
   4. No further actions are necessary, as the Asset Value cannot be depreciated for the Oil and Gas property.  However, I need to save this value and use it when the property is sold.

I know I typed a mouthful, but any insight/confirmation you can provide will be so appreciated.  I so greatly appreciate your patience!

Thanks so much!

Jamie