Turbotax says I must divide/allocate sales price and expenses between land and asset(improvement) for fair market values. How am I to know what that is? Sales price for rental was $330K.
@anissa-rowe You can either use a professional assessor value % or When you initially purchased the property and input it into TT for depreciation you had to give the property a land cost and building and other assets cost.
You can look at the Depreciation Worksheet. Sadly TT does not do the allocation but, you can use this worksheet to do the math yourself. Example say when you bought the home you paid 100k and had other additions of assets of $100k and allocated $15k to land, that would be 7.5%% to allocate. You total the unadjusted cost basis of all assets on the Depreciation Worksheet and prorate the sales price and cost of sale by the same ratio of the cost basis of the asset to the total cost.