1) You would not check the box for "rental, home office or improvement within a home." This option is for sharing your residence for other purposes. It doesn't apply in your situation.
2) Yes, use the most recent appraisal to calculate the percentage for the land. Then use that percentage for both the sales proceeds and selling expenses.
Example:
- Total Appraisal: $80,000 for home & improvements; $20,000 for land ($100,000 total)
- Percentage of Land Basis: $20,000/$100,000 = 20%
- Total Sales Proceeds (gross sales price) = $150,000
- Sales Proceeds for Land = 20% x $150,000 = $30,000
- Sales Proceeds for Home = $150,000 - $30,000 = $120,000
- Total Selling Expenses = $10,000
- Selling Expenses for Land = 20% x $10,000 = $2,000
- Selling Expenses for Home = $10,000 - $2,000 = $8,000
3) Use the above example to allocate the sales proceeds to all the rental assets, based on the asset's adjusted basis (cost less accumulated depreciation) as a percentage of the total adjusted basis of all assets.
4) Yes. When you are finished allocating the sales proceeds, the total for all assets should equal the actual sales proceeds you received.
We recommend that you do these calculations in a spreadsheet before you attempt to enter the information into TurboTax.
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