Carl
Level 15

Investors & landlords

I'm not clear about how you handle deducting partially depreciated assets other than the house from the house sales price.

Did you not read/see that part in the "sale of rental property" guidance above maybe? It's a lot to read, I know. But I can't make it any simpler or shorter really.

Understand that if more than the property itself is listed in your assets list, then you need to allocate your sales price across all of your assets. You will only allocate the structure sales price; you will NOT allocate the land sales price, since the land is not a depreciable asset.

Do intangible assets get "sold" with the house too

I assume you are referring to the financing fees listed under "Amortization" on the 4562. You can't "Sell" that. What you do is select the option that it was "converted to personal use" and on the next screen elect to have the program transfer the remaining balance to be deducted to the rental expenses section. When done, you can work through rental expenses and you'll see the very, very, very last screen in that section is for Miscellaneous Expenses. On that screen you'll see and entry for your financing fees and the remaining amount to be deducted, claimed as a rental expense.

And does it matter if the depreciation was all taken on them yet?

Not sure I follow you here.  There is no such requirement for assets to be fully depreciated. It doesn't work that way. But understand that depreciation (unlike amortization) is *not* a permanent deduction. When you sell the property you are required to recapture the  total amount of depreciation already taken on an asset. You will pay taxes on that depreciation, and that recaptured depreciation will increase your AGI for the tax year. (Recaptured depreciation is taxed anywhere from 0% to a maximum of 25%, depending on your AGI.)