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Investors & landlords
If you have been depreciating these assets as required then this should be a simply third grade math problem ... if you don't understand this basic example then please seek professional guidance...
Are they the original prices I paid for them? Yes
Are they the original cost minus depreciation? No
If the sale price is 200 and cost of sale is 10 ....
asset orig basis % of orig basis sale price cost of sale
House 100 / 160 = 63% x 200 = 126 x10 = 63
land 30 / 160 = 19% x 200 = 38 x10 = 19
cabinets 20 / 160 = 13% x 200 = 26 x 10 = 13
doors 10 / 160 = 5% x 200 = 10 x 10 = 5
total basis 160
‎August 18, 2020
5:30 PM