By selling expenses you are referring to real estate commission and closing costs.
These should also be allocated to residence, land and appliances in the same percentage allocation.
Is this correct?
The $143.61 that was not fully depreciated from the appliances.
Is this added to the basis of the residence or how is this treated?
Since both appliances are in the 4th and 5th year of depreciation could they be recorded as no sales price.
Example:
Appliance is the actual cost of the appliance when purchased.
No reduction will be made on the sales price.
Gross sales price $0
Cost of appliance $767.93
Depreciation taken $666.36.
Adjusted basis $101.57
Total gain ($101.57) reported as a loss.
This would account for the depreciation not taken on the appliance.
The lost would be reported on line 31.
Appreciate your help with this.
