Ok so every asset do the original cost plus $1 and enter that as the selling price for each item, add those up and subtract from the sale price and that number goes in the sale price for house ….the selling expenses I can just group under the main house I assume I don’t have to allocate to each one….example
sale price of house- $100000
Appliance purchased for $1000 report at $1001
new sewer line with an original cost of $10000 report as $10001
then the house instead of $100000 I would report it as $88998.
I have maybe 15 assets but the above example is correct? All my assets are fully depreciated so that would basically tax every dollar I ever spent and then depreciated at ordinary income rate of 25% in my case…
What about say a roof that you are only a couple
years into? If you do cost plus one you are saying you depreciated the whole thing when in fact you only got a couple years of depreciation credit?
thanks
