@Carl wrote:
I also wonder how an accountant would report this. I doubt they have to trick the system this way.
An accountant would simply show the rental property and all assets as "removed for personal use" on the closing date of the sale.
It is fairly simple; a tax preparer using professional tax software does not have to trick the system.
Actually, if the taxpayer were a client for more than a year or two, the accountant would typically have basis information and depreciation schedules for the property.
The total sales price would be reported as well as the adjusted basis and accumulated depreciation (as one total for all assets). Essentially, most would use the same method you described in your response.
