Carl
Level 15

Investors & landlords

When you sell property, particularly rental property and you have multiple assets listed in the asset/depreciation section for that property, then the sales price of each individual asset must add up to the total sales price.

So if you sold the property for $100,000 and included in that sale the separately listed rental assets of a new roof and new central air the price of all three assets must add up to $100,000. Example:

Rental property sold for $90,000

New roof sold for $7000

New A/C sold for $3000

Total sales price: $90,000 plus $7000 plus $3000 equals $100,000

Take note also that if you sold at a gain, then you must show a gain on all assets - even if that gain is only $1 on some assets.

Likewise, if you sold at a loss then  you must show a loss on all assets - even if that loss is only $1 on some assets.

If you show a gain on some assets and a loss on others, the program flat out can not and will not handle it correctly. It totally screws up the depreciation recapture and your SCH D and/or 4797 will be wrong. To top it off, the TTX program will *NOT* catch the errors since "mathematically" there are no errors to catch.