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I sold my rental property last year. It was bought in 2011 for $170,000, then rented out until mid 2018, sold in 2018 for $275,000. No improvement, the fair market value of the land was $30,000. Now I sold the property, what should be filled in for the following few items in TurboTax:
Wages & Income -> Rental Properties & Royalties ….-> Sold
Sales Information
Enter the following information about the sale of this asset. You must divide, or allocate the sales price and expenses between the land and the asset (improvement) based on their fair market values.
Asset Sales Price (Business Portion Only) _________
Asset Sales Expenses (Business Portion Only) ________
Land Sales Price (Business Portion Only) ___________
Land Sales Expenses (Business Portion Only)___________
Question 1: How to calculate the Land Sales Price (business Portion Only)? The property was used 100% for rental.
Question 2: What number should be for the asset sales price? Is it $275,000 plus closing costs? Is not it that the asset sales price include the land price already? If I put non-zero land sales price (for example, 30,000), my tax goes up immediately, so this land sales price seems add to the gain of selling this rental property, something wrong in my understanding.
Question 2: Is the Asset sales price $275,000 in my case?
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Your asset sales price is $275k. If there are closing costs, add them to the basis. You will have to estimate as best you can the land price. If land prices have not changed since 2011, use the same percentage that you used when your first started renting. If out of the $170 purchase, 20 % was allocated to land, do the same for the sale.
Allison,
So what numbers did you put in the Asset Sales and Land Sales based on what they told you?
I am having the same challenge...figuring out where to add the closing expenses for the purchase. Closing expenses for the sale is transparent, but I am searching for where to find fields for closing expenses on purchase.
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