topic Do I enter asset sale price as 70k in sale of rental? Contract price 80k. Land value today 10k. in Investors & landlords

Do I enter asset sale price as 70k in sale of rental? Contract price 80k. Land value today 10k.

tpagal — Mon, 09 Mar 2026 06:22:55 GMT

When entering the property (the home itself) in the depreciation schedule and clicking "I sold it this year", it asks for the sales information. See above numbers. Then when I enter the next asset ie. roof, CHA, appliances it asks for the same sales info. Do I leave those blank?

Re: Do I enter asset sale price as 70k in sale of rental? Contract price 80k. Land value today 10k.

ColeenD3 — Sat, 05 Feb 2022 20:33:35 GMT

Yes, the house and all its components sold for $80,000 (including land). You would zero sales price for its components.

Re: Do I enter asset sale price as 70k in sale of rental? Contract price 80k. Land value today 10k.

tpagal — Sat, 05 Feb 2022 20:51:40 GMT

Ok, just to confirm of the 80k contract price I enter 70k under asset sale price and 10k under land sale price leaving asset and land sales expense boxes blank. Then every other asset listed i would enter zero on the same sales information boxes. Thanks, C

Re: Do I enter asset sale price as 70k in sale of rental? Contract price 80k. Land value today 10k.

ColeenD3 — Sat, 05 Feb 2022 21:01:13 GMT

Yes. However, if you did have sales expenses such as any below, you can include them in the expense boxes. You would prorate by percentage between the house and land.

Agent commission
Transfer tax
Title insurance
Escrow and closing fees
Prorated property taxes
Credits toward closing costs
Attorney’s fee

Re: Do I enter asset sale price as 70k in sale of rental? Contract price 80k. Land value today 10k.

tpagal — Sat, 05 Feb 2022 21:05:57 GMT

Thank you for your quick replies. In regards to costs, I had did protected taxes but also prorated rent and then they listed security deposits for RENT that were transferred to the new buyer. So, I deduct all of those as "closing expenses" but only under the asset sales expenses? Thanks again. I have 5 rentals and a whopping tax bill. Just making sure I am entering everything in the right place.

Re: Do I enter asset sale price as 70k in sale of rental? Contract price 80k. Land value today 10k.

tpagal — Sat, 05 Feb 2022 21:21:50 GMT

One last thing on the expenses. Since the house was sold for less than the mortgage, we had to bring 4800 to closing. Is that deducted anywhere? Thanks, C

Re: Do I enter asset sale price as 70k in sale of rental? Contract price 80k. Land value today 10k.

ColeenD3 — Sun, 06 Feb 2022 13:41:48 GMT

No. Your mortgage has nothing to do with your gain, nor does having to bring cash to the table.

Re: Do I enter asset sale price as 70k in sale of rental? Contract price 80k. Land value today 10k.

tpagal — Sun, 06 Feb 2022 14:15:02 GMT

To verify, sale expenses are only entered for the sale of the house (asset) and not its various components. Correct? And is prepaid rent, transfer of security deposit considered sales expenses? Thanks

Re: Do I enter asset sale price as 70k in sale of rental? Contract price 80k. Land value today 10k.

ColeenD3 — Mon, 07 Feb 2022 13:55:28 GMT

The sales expenses should be allocated by percentage between land and building. Prepaid rent is income. The transfer of the security deposit fees is a rental expense, not a sales expense.