Sale of Rental Property

[dterroba]

Hello,

I was hoping someone could walk me through the sale of a rental property and items that I section 179 and depreciated along the way. I bought my condo in 2004 for $156k, and we lived there until 2017. We bought a house and started to rent the condo. I put it in service on 1/1/2018 and used the FMV amount of $130k and $11,313 for the land value. 

We listed and sold it on 11/21/2022 for $159k, what do I put for the Asset Sales Price and Land Sales Price? Confirming the Asset Sales Expenses would be all costs like attorney fees, title fees, etc.? Would I include the mortgage payoff amount? 

As far as the other assets I bought a washer and dryer for the unit and used section 179. I also replaced the furnace and decided to depreciate it over 5 years. What should I input for the Sales Price for each item? 

Best,

David

[DavidD66]

The sales price would be what you sold the condo for.  The sales costs, which reduce the proceeds would be any marketing costs you had, costs to get the condo ready to sell, and closing costs (like commissions, legal fees, courier fees, etc) that you paid.  You would not include the mortgage payoff or any property taxes, association fees, etc.).  I would allocate it between the Asset (the condo) and land according to the ratio that the Tax Assessor used on the property tax bill.  You can get that online if it is not on your bill.  As for other assets, I would dispose of them using whatever carrying cost they have at the time of sale.  For instance, any expensed using 179, would be zero, I would apply $0.00 as the sales price.  If the Furnace had a remaining value of $750, I would apply $750 of the proceeds to furnace.  All assets other than the condo and the land will have a gain/loss of $0.00.