Yes, here is an example of how to apportion the selling price and selling expenses.
Use the original cost of each asset listed on depreciation, add those together then divide each one by the combined total to find the percentage of the cost for each asset. Use that percentage times the sales price and sales expenses to find the selling price/sales expenses for each asset. If some assets no longer have a value you can use zero for those such as an appliance that is 10 years old.
Example: Original Cost (of each asset on your depreciation schedule)
$10,000 Land = 13.33%
$50,000 House = 66.67%
$15,000 Improvements = 20%
$75,000 Total = 100%
Multiply each percentage times the sales price/sales expenses to arrive at each individual sales price/sales expense.
I hope this example provides clarification to enter your sale.
As you noted, you will be asked if you want to report this using the installment method. Answer Yes, then continue to finish the sale of each asset (building and land, and other assets).
NOTE: All depreciation recapture will occur in the year of sale, only gains above this amount will be allowed to use the installment method.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
