I need to figure out what the asset sales, asset sales expenses, land sales and land sales expenses are for our rental property that we sold

[Coleen3 · Accepted solution]

Asset sale price is found on Line 406 (Contract sales price) of your HUD. 

Land portion of the sale

It is a pro-ration. One possible way is to contact the realtor to see if they can get the information for you. Another is to look at the property/land pro-ration you entered when you began depreciating unless the land prices have gone up or down considerably. Third possibility, which is not always accurate, is to look at your property tax bill. 

 Sales expenses include:

 - commissions

 - appraisal fees

 - broker's fees

 - legal fees

 - advertising fees

 - home inspection reports

 - title insurance

 - transfer taxes or fees

 - geological surveys

 - loan charges (points) or other fees paid on the buyer's behalf

You must allocate the sales expenses between the land and the house. If the house value is $200k and the land is $100k then two thirds of the expense goes to the house and one third to the land.

[ksrph]

I have the same question. I sold a rental house.  It was not part of my main home and I did not live in it.  The 1099-S I received only lists the gross proceeds (Box 2) which was $100,000.  This was an amicable sale to a known party; we did not use a realtor.  Still not sure what to put in these fields:

Asset sales price (business portion only)

Asset sales expenses (business portion only)

Land sales price (business portion only)

Land sales expenses (business portion only)

[Carl]

Most of the time, people over think this. Here's the guidance. Typically, you figure what percentage of your acquisition costs you allocated to the land and use that same percentage to allocate your sales price between the land and structure.

Reporting the Sale of Rental Property

If you qualify for the "lived in 2 of last 5 years" capital gains exclusion, then when prompted you WILL indicate that this sale DOES INCLUDE the sale of your main home. For AD MIL personnel who don't qualify because of PCS orders, select this option anyway, because you "MIGHT" qualify for at last a partial exclusion.

Start working through Rental & Royalty Income (SCH E) "AS IF" you did not sell the property. One of the screens near the start will have a selection on it for "I sold or otherwise disposed of this property in  2021". Select it. After you select the "I sold or otherwise disposed of this property in 2021" you continue working it through "as if" you still own it. When you come to the summary screen you will enter all of your rental income and expenses, even if it's zero. Then you MUST work through the "Sale of Property/Depreciation" section. You must work through each individual asset one at a time to report its disposition (in your case, all your rental assets were sold).

Understand that if more than the property itself is listed in your assets list, then you need to allocate your sales price across all of your assets.  You will only allocate the structure sales price; you will NOT allocate the land sales price, since the land is not a depreciable asset.  Then if you sold this rental at a gain, you must show a gain on all assets, even if that gain is $1 on some assets. Likewise, if you sold at a loss then you must show a loss on all assets, even if that loss is $1 on some assets.

Basically, when working through an asset you select the option for "I stopped using this asset in 2021" and go from there. Note that you MUST do this for EACH AND EVERY asset listed.

When you finish working through everything listed in the assets section, if you ever at any time you owned this rental you claimed vehicle expenses, then you must also work through the vehicle section and show the disposition of the vehicle. Most likely, your vehicle disposition will be "removed for personal use", as I seriously doubt you sold your vehicle as a part of this rental sale.