Thank you again.
The new roof was in 2013 @ $10K. However come 2021 (7 years later) the roof is valued at and sold for $30,000? This where we are confused. I thought everyone was saying add a $1 to the original cost. (IE: $10,001 for the roof). Where is the $30,000 ($20,000 more, come in for a 7 YO roof?
If I have an AC with the cost of $7K, in 2010. Would I not enter a sales price in 2021 of $7,001.00?
And I have to do this with every asset, including those that are fully depreciated?
Can I dispose of assets that we removed and tossed out prior to the sale? How?
Are assets fully depreciated, and those not fully depreciated entered the same way?
This is why it gets confusing - A TTx Expert and "Employee, posted this. It seems to contradict what you and others have said. What are your thoughts on this advice?
"...
The house sale uses the sale price while the other items need to be marked as sold for $0. The point is to get the remainder of the money spent on those assets subtracted onto your tax return. Follow these steps:
- Return to your rental
- Go to depreciation section
- As you go through the asset summary,
- under Tell Us More, mark that it was sold, retired, stolen, destroyed, etc
- enter the date you stopped using it for rental purpose
- continue
- confirm depreciation
- special handling, select no
- sales information
- enter 0 for sale price
Do this for every asset not fully depreciated except the house since the house gets the actual sales price and sale."
