https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/i-ve-read-many-posts-on-the-dispostion-of-assets-for-a-rental-property-is-it-possible-to-have-my/01/2845013#M94903 Converted main home to rental property in 2020.&nbsp;&nbsp;Used FMV of $343,400 for basis as lesser of FMV vs. adjusted basis.&nbsp;&nbsp;Land value $93,636.<BR />Sold property Sep 2022.&nbsp;&nbsp;Changing to adjusted basis as orig sales price+improvements-previous year &amp; current year depeciation-energy credits, basis changed to $341,034.&nbsp;&nbsp;Using same land value of $93,636.<BR /><BR />Have several other assets for the property, all depreciated since converting property.&nbsp;&nbsp;To calculate sales price I used the original % of land/orig FMV basis to come up with a $ for the land, but for the cost of other assets (based on other posts I read) I had Turbotax calc a sales price based on a $1 gain.&nbsp;&nbsp;Then used sales price of $580K-sales price of land-other assets to come up with sales price for structure.&nbsp;&nbsp;For cost of sale just used the %&nbsp;&nbsp;method.&nbsp;&nbsp;Does this seem reasonable or will this cause red flags for the IRS?&nbsp;&nbsp;I can provide more specific numbers if needed.&nbsp;&nbsp;Thanks for any responses. Mon, 23 Feb 2026 09:43:30 GMT dlennon1954 2026-02-23T09:43:30Z https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/i-ve-read-many-posts-on-the-dispostion-of-assets-for-a-rental-property-is-it-possible-to-have-my/01/2845013#M94903 Converted main home to rental property in 2020.&nbsp;&nbsp;Used FMV of $343,400 for basis as lesser of FMV vs. adjusted basis.&nbsp;&nbsp;Land value $93,636.<BR />Sold property Sep 2022.&nbsp;&nbsp;Changing to adjusted basis as orig sales price+improvements-previous year &amp; current year depeciation-energy credits, basis changed to $341,034.&nbsp;&nbsp;Using same land value of $93,636.<BR /><BR />Have several other assets for the property, all depreciated since converting property.&nbsp;&nbsp;To calculate sales price I used the original % of land/orig FMV basis to come up with a $ for the land, but for the cost of other assets (based on other posts I read) I had Turbotax calc a sales price based on a $1 gain.&nbsp;&nbsp;Then used sales price of $580K-sales price of land-other assets to come up with sales price for structure.&nbsp;&nbsp;For cost of sale just used the %&nbsp;&nbsp;method.&nbsp;&nbsp;Does this seem reasonable or will this cause red flags for the IRS?&nbsp;&nbsp;I can provide more specific numbers if needed.&nbsp;&nbsp;Thanks for any responses. Mon, 23 Feb 2026 09:43:30 GMT https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/i-ve-read-many-posts-on-the-dispostion-of-assets-for-a-rental-property-is-it-possible-to-have-my/01/2845013#M94903 dlennon1954 2026-02-23T09:43:30Z https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/re-i-ve-read-many-posts-on-the-dispostion-of-assets-for-a-rental-property-is-it-possible-to-hav/01/2845099#M94906 <P>Your approach is a good one, and is reasonable. &nbsp;There are multiple ways to allocate the sales costs the proceeds to the various assets, but they should all result in the same gain/loss. &nbsp;I don't see any reason for a "red flag" to go up based what you have described. &nbsp;</P> Mon, 30 Jan 2023 19:26:45 GMT https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/re-i-ve-read-many-posts-on-the-dispostion-of-assets-for-a-rental-property-is-it-possible-to-hav/01/2845099#M94906 DavidD66 2023-01-30T19:26:45Z