Sold rental home property. Being asked about sales information, such as asset sales price (business portion only), land sales expenses (business portion only), etc?

[ksrph]

Sold rental home for $130,000.  TT asking me sales information, such as asset sales price (business portion only), asset sales expenses (business portion only), land sales price (business portion only), land sales expenses (business portion only)
I don't know how to fill in the fields, please help?

[KrisD15]

Did you live in the house and rent only a portion? 

If so, allocate the applicable amounts. For example, if you rented one side of a duplex, and lived in the other, report 50% as business and 50% personal. 

If this was ONLY a rental, enter the full amounts. 

[ksrph]

No, I did not live in the house and rent a portion: this was a separate rental house.

There are 4 fields TT is asking for.  If I sold the house for $130,000, what do I enter in each of the 4 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)

Thank you

[ThomasM125]

The asset sales price is the portion of the sales price that is allocated to the building and contents. The asset sales expenses are the asset portion of the commissions and fees you paid that were associated with the sale. The land sales price would be the portion of the sale price allocated to the land. The land sales expenses would be the portion of the sales expenses allocated to the land.

To give you an example, assume you sold the property for $100,000. If the land was worth $10,000, then the asset sales price would be $90,000 and the land sales price would be $10,000. If you paid $5,000 in sale expenses (commission for the sales agent for instance), the asset sales expenses would be $4,500 (90% of $5,000) and the land sales expenses would be $500.

[ksrph]

Hi,

We sold the rental house and did not use an agent nor a realtor; we knew the person who was buying it, so this was not necessary.  We received $130,000 as one payment; it was not broken down as to land, asset, etc.  What do I enter in those 4 fields?  Or how do I find out how the $130,000 breaks down?

[Cynthiad66]

I understand your confusion.  When you purchased the property but you can do this.  Breaking out the land is a concern.

First, determine the cost basis. How do you determine the basis of a rental property?

The cost basis for rental real estate is your acquisition cost (including any mortgage debt you obtained) minus the value of the land it's built on. If you paid $200,000 for a duplex and the land is appraised for $50,000, your basic cost basis is $150,000. Plus the cost of any capital improvements made over the years.

Land value had to be determined by you, based on the value of the property when you acquired the property.  If you say you purchased the property for $100,000.00 and the value of the land at the time was $10,000.00 then the cost of the building would be $90,000.00 and the land would be $10,000.

Use this IRS lin for a publication on Rental Property:  Rental Property - IRS

@ksrph

[ksrph]

I sold a rental house.  I did not live in it at all or in any part of it.  It was a separate, free-standing house, miles away from my main house.  I sold it for $130,000 and this is listed on the 1099-S in box 2 as "gross proceeds"  

I sold the house to an acquaintance; we did not use an agent or broker.  We only contacted a title agency to transfer the title.  The only expenses we incurred were the closing costs to the title company.

I received $130,000 for the house; I do not know how this was allocated between the actual home (building) and the land it sits on.  

The TurboTax question is not phrased clearly for my situation.  Can you tell me what numbers I should enter in the following 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)

[Vanessa A]

The part that says business portion only is not part of the equation for you since the entire property was always used for business.

Also, are you entering this in the rental section instead of the home sale section?  It belongs in the rental section

To calculate the ratio you can look at your property tax statement.  Say your property tax statement shows your total assessed value is $100,000 with the improvements valued at $75,000 and the land at $25,000.  You would then allocate 75% to assets and improvements and 25% to the land.

If you had no selling expenses you would leave this blank. 

So if you sold the property for $130,000 with the above scenario, the asset sales price would be $97,500 while the land price would be $32,500.

To enter the sale of your rental  click the following:

• Federal
• Income and Expenses
• Show more next to Rentals, Royalties and Farm
• Start next to Farm Income and Farm Rental
• follow the steps until you can answer that you sold the property