Thank you Carl! If I understand your example correctly, I should allocate at least 10,000 to each of those 2 asset in order to fully recapture the depreciation. The extra 5,000 can be allocated to either, and wont make a difference?
My situation is in the rental section summary, only property address is listed. It did not list land as a separate asset in the summary. I'm only seeing this breakout between asset and land when entering the selling price. Land is not depreciated, so maybe I can just add 1 dollar gain to it, so that it tricks the software in order to handle it and allocate all the rest to asset itself? As long as all the depreciation is recaptured, are there requirement how it needs to be allocated? In reality the sale price did not break out between the two, so it is at my discretion how to allocate as long as all prior depreciation is all recaptured and taxed?
Does anyone know how it should show up in the final forms filed with IRS? Is form 4947 required? Should the sale be captured on Schedule D and Form 8949 (with Code H for the exclusion) OR form 4947 Sale of Business Property? Thank you!
@Carl
