Question

Value of depreciated improvements of rental property at time of sale

Forum|Forum|5 years ago
February 27, 2021
1 reply
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How do I determine the current value of the improvements made to a rental property that sold for $157,50. The price included the original building, improvements, and land? I have the depreciation report with the totals for each.

TurboTax Business Windows

ColeenD3

The current value of an improvement is the original cost minus any depreciation taken. Land is not depreciable.

When you sell, you have to allocate the sales price between the building and the land. You also have to determine if the land value has increased or decrease percentage-wise in relation to the building.