@DianeW777
Hello Diane,
Thank you for the quick reply! I'm not quite following your thoughts.
Question 2 regarding land allocation:
- If $45,000 represents the total apportioned additional basis for Replacement Property 1, and 20% (or $9,000) of that amount is allocated as land, shouldn't the Cost of the asset be $45,000, in which the Cost of Land field is populated with $9,000? The $54,000 was a number I created by incorrectly adding the $9,000 to the $45,000 when it already contained it. Please confirm.
- FYI, the 20% allocation for land was based on the land value as it related to the replacement property purchase.
Question 1 regarding depletion:
- I think we are on the same page here. If the original basis (from relinquished prop) and additional basis (from replacement properties) that is apportioned to the mineral rights property (and saved outside of TurboTax) is for example $100,000, then the depletion accumulated over time cannot exceed the $100,000, or else you would have a negative basis amount. Please confirm.
- If this is correct, then having a greater basis value apportioned to the mineral rights property is beneficial, having the same weight/impact as assigning it to a property with a depreciable asset. Please confirm.
Thanks so much!
Jamie
