Originally, I simply put the sale price of each depreciated asset at its remaining allowed depreciation, which basically made the gain of each asset zero. I subtracted the total of these from the sale price proportioned to the building that was part of the original purchase. This basically put all of the gain on the originally purchase building and nothing against the asset add throughout the rental life.
It was recommended that I create a spread sheet to allocate the sale price to each asset, including the building, based on a ratio of their individual cost basis to the total cost basis. I did this and the Unrecaptured 1250 Gain increased, even though the total gain on depreciated assets (building and added assets) is the same. Why would the Unrecaptured 1250 can change?
It was also recommended in a separate discussion to not allocate a sale price to any of the depreciated assets and somehow just handle it on Form 4797. Is there an easy way to do this without allocating a sale price to each added asset?
