topic Sale of rental property- should we allocate structure sales proceeds or entire house sales proceeds to depreciated asset sales prices? in Investors & landlords

Sale of rental property- should we allocate structure sales proceeds or entire house sales proceeds to depreciated asset sales prices?

manbeing — Mon, 03 Jun 2019 19:01:13 GMT

Please let me know which sales proceeds should be used for depreciated asset allocations? $100K? or $80K?

House sales proceeds - $100K

structure sales proceeds - $80K

land sales proceeds - 20K ($100K-$80K)

You should allocate the proceeds to what was sold, which...

MichaelL1 — Mon, 03 Jun 2019 19:01:15 GMT

You should allocate the proceeds to what was sold, which is land , the structure, and then possibly any recent improvements made that are being depreciated on the return.

Make sure all assets listed on the depreciation schedule are accounted for, as this is what removes them from the schedule.

Thanks for the reply. Should I keep the land proceeds as...

manbeing — Mon, 03 Jun 2019 19:01:16 GMT

Thanks for the reply. Should I keep the land proceeds as is ($20K) and allocate structure proceeds (80K) to depreciated assets? for example, 10K (total depreciated assets sales price) + $structure proceeds (70K) + land proceeds (20K) = 100K

I would add it to structural asset as that is what was da...

MichaelL1 — Mon, 03 Jun 2019 19:01:17 GMT

I would add it to structural asset as that is what was damaged (and is what the assessment was for)--plus you can depreciate it.