I need some advice here. I sold my rental apartment property in 2021 for $120K. I broke down the sale between building and land, building sale portion comes to $114K Land sale $6K because when I bought the rental property back in 2004, I had building and land broken out on my depreciation.
Total Purchase Price: $105K ( back in 2004) - allocated $100K to Building and $5K to Land. My question is I have several assets that I depreciated along the way. Appliance $6K, Improvements $6200, Refrigerator $519, Carpet $950, Refrigerator $455, Stove $538, Refrigerator $481, Carpeting $1625, Carpeting $1336. All the items listed above has been fully depreciated. How do I properly divide the Sale Price of $114K between the building and those assets listed above? What ratio would I use? There definitely will be a gain, so I know I be taking tax, I am trying to make sure I allocate the sale price properly to the building portion and the rest to the assets, that will total the $114,000. Additional information. I did depreciate the building as well, from 2004 to 2021 and I do understand about the recapturing part of that as well. Just not sure how to breakdown the sale between the building and the individual assets that were listed on the depreciation worksheet. Also, what section on Form 4797 would I list the appliances, improvements, carpeting? Would it be Part I or Part III. Thank you in advance for your assistance.
