I sold a Condo rental. I tried allocating per your suggestion with a $1 gain on the Improvements (dishwasher, dryer, etc.) When I do so, I get 2 separate gains. The gains on the Improvements are treated separately. Why can I not allocate the Sales Price to the Improvements so that I have $0 gain or loss? When I tried that, it worked. The correct depreciation recapture gain was recorded for the condo and all the assets were "taken off the books."
