First ... thank you!
I used actual costs of purchase & sale from the Title companies Settlement Statement.
I did not make any improvements to the house before starting the rental. So I have no improvement ratio.
Over the course of 6 years, several improvements were made -- and entered -- as property improvements. I may or may not not have categorized them correctly(i.e. wood floor vs roof vs driveway vs drainage -- which was one of my questions), but they were entered nonetheless for some type of depreciation.
So I sold the house for $315,000. Besides disposing of the rental property itself for $315,000, TT then asks me if I sold the roof, the driveway, the wood floors, the new doors, etc ... obviously I did, as those went with the house.
Just to be clear...
When it comes to entering sale of the property, please confirm that you are saying to use the same ratio as when I entered it into service. If I had established a 70/30 split when I put the rental into service, then my sales price would be entered as $220,500 for the asset. My land sales price would be entered as $94,500. Correct?
That adds up to my sales price of $315,000 .... but I still have to deal with all the listed improvements.
Now , how do I treat the sale of each improvement? Say the new front door/assembly cost me $5,000 when I originally listed it as an improvement. What do I put in the sale price for all these items?
