Discussion:Selling property with improvements
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Discussion Forum Index --> Tax Questions --> Selling property with improvements
Www.cpa1.biz (talk|edits) said: | 10 March 2007 |
| Almanacers,
I want to know how you show sale of property with improvements on 4797. This is how I was going to do it but I dont know if this is the best way to do it. Show total sale of property in diposition line in pro series for Property A. Then for the improvement(Property B), I would show a sale of 0 dollars because it was part of the property. So property A would show the total sale of the property and property B (the improvment) would show a negative amount. OR, shoud I do it the other way and allocate the improvment for the total cost of property and improvements and take that percentage and multiply it by the sale and use that as the sale price in the diposition sale line for the improvement. Anyone following me here and what ways do you usually show it? Thanks, Bj | |
Www.cpa1.biz (talk|edits) said: | 10 March 2007 |
| Any insight on this you all? | |
Www.cpa1.biz (talk|edits) said: | 11 March 2007 |
| Hey you all,
I am popping this up to the top to see if I can get any input on this. Please advise. Thanks, Bj | |
| March 12, 2007 | |
| I combine all amounts on one asset worksheet, when showing the sale of property and show it as just one sale. I copy the amounts from each asset on a sheet of paper, add them all up (cost, prior deprec, current year deprec, AMT amounts, etc), enter the totals on the main property worksheet, and then delete the other asset worksheets for the improvements. | |
| March 12, 2007 | |
| But first I go into each asset worksheet and enter the disposition date, so the software will calculate the current year depreciation for each. | |
Www.cpa1.biz (talk|edits) said: | 12 March 2007 |
| Good stuff Deback.
Thanks a lot. I see. | |
Death&Taxes (talk|edits) said: | 12 March 2007 |
| I do the same thing except I delete the old worksheets after printing them and stapling them together....of course. I am curious, what do you do about Section 1245 property, Deb? Roll it into the building etc? | |
| March 12, 2007 | |
| Good idea to print the old worksheets. I do have copies of the deprec sch in my prior year's copy, but I will start doing that, too.
I usually use a hand truck to roll the appliances and furniture into the building. Yes, I do, when the sales price includes the 1245 property with no itemization of the separate sales prices (which is about 100% of the time), unless those items were trashed or kept by the owner (in which I just enter the disposition date for those assets to end the depreciation). | |
Www.cpa1.biz (talk|edits) said: | 14 March 2007 |
| I was just thinking about this and how does improvements that were bought less than one year come into play dealing with long term and short term capital gains or am I thinking too hard? | |
| 14 March 2007 | |
| cpa1.biz...put your thinking cap on, you know the answer to your own question...as evidenced by the fact you asked it. | |
| 14 March 2007 | |
| DT - you and 1040man could go into business together with dueling staplers! Scan 'em in!!! | |
