August 1979 purchased condo for $58,500 ($47,454 Building $11,088 land) 50/50 with parents.
In July 1994 I purchased the remaining 50% interest and paid $45,000. This $45,000 was 1/2 of original purchase $29,250 + 1/2 of calculated gain of $31,500 ($15,750) based on $100,000 FMV - $10,000 expenses -original purchase price of $58,500. Depreciation was deducted from my returns from 1980-2009 for the entire $47,454. My parent's share of depreciation $11,000 was factored into the Capital gains figure calculated for their 1994 return.
The condo was sold in August 2023 for $595,000.
Selling Expenses were $54,699.83
My basis: $29,259 +$45,000 + expenses original purchase $599.84 = $74,849.84
Improvements $19,621
Depreciation??? Total taken $47,454 on my returns. What about $11,000 reported on parents returns in 1994 when I bought out my remaining 50% share? Do I use $36,454?
Land Value?? Is this factored into my gain from 2023 sale. Land was 18.9% of original purchase. Is the value of land at time of sale also 18.9% of the 595,000 gross sales price or $112,455? Is this added to my adjusted cost basis when calculating the gain on my sale? Could not find any IRS publication that talked about land. Pub 551 talks about allocating basis of property among the land and building so can figure depreciation allowable on the building.
You assistance is appreciated
