WHen you sell rental property, you report the sale of each individual asset separately. You split your total sales price and total sales expenses across all assets. It's important to note that if you sold the property at a gain, then your sales price for each asset must show a gain on each asset. Doesn't matter if the gain is $1 on some assets, and $100,000 on other assets. A gain is a gain is a gain is a..... That's the only way to ensure you correctly recapture the depreciation taken on all assets.
