Investors & landlords
If the residential rental has been sold and you are currently depreciating one or more appliances within the residential rental, the appliance(s) will be recorded as sold and the selling price allocated across the appliance(s) cost.
The sale of the appliances and any depreciation recapture will be reported on IRS form 4797. See IRS form 4797 Part III.
As an example, the residential rental and appliance was purchased for $111,000 and the selling price of $222,000 is allocated across the land, the structure and the appliance.
Purchase Sales price
Residence 100,000 200,000
Land 10,000 20,000
Appliance 1,0000 2,000
Total 111,000 222,000
The appliance is reported as sold at the screen Tell us more about this rental asset within the rental property asset screens.
Note: Sale of land reported on IRS form 4797 Part I, page 1.
