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Discussion Archives:SALE OF RENTAL PROBLEMS
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Discussion Forum Index --> Tax Questions --> SALE OF RENTAL PROBLEMS
MRBARRYTAX (talk|edits) said:
| 8 March 2007
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| I inherited new client with sale of property. asset wksht has property depreciated since 1994 for $140,000. Obtaining the settlement pages, i discovered the true cost was $175,000 and no allocation for land. would it be okay to add the $35,000 to basis and compute the tax cosequences of the sale?
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Deback (talk|edits) said:
| March 8, 2007
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| I would treat the missing $35,000 as the land allocation, which is probably how it was intended when the depreciation began in 1994.
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Kevinh5 (talk|edits) said:
| 8 March 2007
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| THAT WOULD HAVE BEEN THE STANDARD 20% 'RULE OF THUMB'
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Death&Taxes (talk|edits) said:
| 8 March 2007
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| Exactly! More than likely the land was lost when another new accountant took over and began anew with new software. And don't forget if you find the original HUD-1 to put in the buying costs.
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