This is very helpful. One of the sub-assets is the amortization of mortgage points - I suppose I just report those as sold at a gain (even though that doesn't make much sense). For the hard improvements such as the kitchen/bath remodeling work, do I just assign a reasonable percentage of the home sale price to each of these improvements, making sure that each is reported as a gain?
Said another way: does this equation make sense for each asset:
(allocated sale price of sub-asset) > (initial cost of asset - depreciation for that asset)
And further, am I correct in assuming that if I have four sub assets, I'll end up with four different sections for calculating the depreciation on schedule E (for the part of the year that asset was in service) and then four separate "sales" where I calculate the capital gains on the disposition of these assets?
And if that's correct, what form(s) do the capital gains calculations end up on? I'm trying to align the interview with the forms view.
