I sold my rental property last year. It was bought in 2011 for $170,000, then
rented out until mid 2018, sold in 2018 for $275,000. No improvement, the fair market value of the land was $30,000. Now I sold the property, what should be filled
in for the following few items in TurboTax:
Wages & Income -> Rental Properties & Royalties ….->
Sold
Sales Information
Enter the following information about the sale of this
asset. You must divide, or allocate the
sales price and expenses between the land and the asset (improvement) based on
their fair market values.
Asset Sales Price (Business Portion Only) _________
Asset Sales Expenses (Business Portion Only) ________
Land Sales Price (Business Portion Only) ___________
Land Sales Expenses (Business Portion Only)___________
Question 1: How to calculate the Land
Sales Price (business Portion Only)? The
property was used 100% for rental.
Question 2: What number should be for the asset sales price? Is it $275,000 plus closing costs? Is not it that the asset sales price include the land price already? If I put non-zero land sales price (for
example, 30,000), my tax goes up immediately, so this land sales price seems
add to the gain of selling this rental property, something wrong in my understanding.
Question 2: Is the
Asset sales price $275,000 in my case?
