Form 4797

[DanTz]

On the sale of a rental unit on Form 4797 how do you treat the depreciation on the HVAC system.

This was a replacement HVAC system that was put in after the rental property was placed in service.

I used the straight-line depreciation for 27.5 years on this.

Depreciation taken $1,726,86 and remaining depreciation not taken is $2,273.14.

Is the depreciation taken added to the total depreciation taken with the building?

Is the depreciation not taken $2,273.14 added to the basis of the property?

My second question is on appliances still in the 5-year depreciation at time of rental property sale.

Depreciation taken on 2 appliances up to time of rental sale is $840.81 and depreciation not taken $143.61.

Does this need to be reported on Form 4797 and how is this reported.

Last question is do you have to report for any depreciation taken on appliances that are already past the 5-year period and are fully depreciated ?

Rental property was held for 17 years.

[Mike9241]

since this sale involved the house and other assets that were separate from the house  - the  HVAC and appliances.

each must be allocated a portion of the sales price and selling expenses based on their relative Fair Market Value.  if you don't do this these assets will not be treated as disposed of so their net tax basis will not be taken into account when the gain is determined and they will pop up next year when you do your return. so you have to indicate that each separate asset is sold.

for the appliances, I would just allocate enough so no gain or loss. thus no depreciation recapture on them

or use your own judgment. I doubt that they're worth more then their remaining tax basis

for HVAC

To determine the fair market value of an HVAC system when selling a property, you can consider the following factors:

1. Age of the HVAC system: The age of the system is a crucial factor in determining its value. The older the system, the less valuable it is.

2. Condition of the HVAC system: The condition of the system is another important factor. If the system is well-maintained and in good condition, it will be more valuable.

3. Efficiency of the HVAC system: The efficiency of the system is also a factor. If the system is energy-efficient, it will be more valuable.

4. Type of HVAC system: The type of system installed in the property is also a factor. For example, a central air conditioning system is more valuable than a window unit.

5. Local market conditions: The local market conditions also play a role in determining the fair market value of an HVAC system. You can consult with a local real estate agent to get an idea of the current market conditions.

however, I doubt an almost 12-year-old HVAC is worth more than it's tax basis maybe worth even less. 

To determine the fair market value of your HVAC system, you can consider the above factors and consult with a local HVAC contractor or a real estate agent. They can provide you with an estimate of the value of your system based on the above factors and the local market conditions.