Converted main home to rental property in 2020. Used FMV of $343,400 for basis as lesser of FMV vs. adjusted basis. Land value $93,636.
Sold property Sep 2022. Changing to adjusted basis as orig sales price+improvements-previous year & current year depeciation-energy credits, basis changed to $341,034. Using same land value of $93,636.
Have several other assets for the property, all depreciated since converting property. To calculate sales price I used the original % of land/orig FMV basis to come up with a $ for the land, but for the cost of other assets (based on other posts I read) I had Turbotax calc a sales price based on a $1 gain. Then used sales price of $580K-sales price of land-other assets to come up with sales price for structure. For cost of sale just used the % method. Does this seem reasonable or will this cause red flags for the IRS? I can provide more specific numbers if needed. Thanks for any responses.
