I thank you for sharing your time this morning and many years experience with me!
For reference. Total original purchase: $215,000. Assigned the land at $60,000 ... so the asset was $155,000.
The total of my improvements, over the course of 6 years, adds up to approx $50,000 ... and have been depreciated accordingly by TT.
If I understand you correctly, the spreadsheet would look something like the following:
Original Cost Basis. Ratio. Sales Price. Cost of Sale
Home 155,000 58% 182,700. ?
Land 60,000. 23%. 72,450. ?
Imp. 50,000. 19%. 59,850. ?
Totals 265,000 315,000. ?
Cost to buy: $540 (Settlement Statement)
Total sales price was $315,000.
Cost to sell: $1766 (Settlement Statement)
I'm trying to convey my confusion as best I can. Sorry if I'm being dense on this ... first rental property sale. Thanks again!
