Question

Rental House "sales information"(asset sales price, sales expense, land price and sales expense)?

Forum|Forum|4 years ago
March 22, 2022
1 reply
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We purchase our home back in 2007 for $139,390 lived there for 3 years. We listed the home for rent from 2010 to mid 2021 where we sold it for $182k, land value according to the county is $25k trying to figure out how to get asset sales price, sales expense, land price, sales expense. I'm so confuse, on where to start or how to even figure these number.

ColeenD3

Start with the known amounts, purchase price and sales price.

Sales price: 182k
Purchase price: 139,390

You also know the land price, at least at purchase. Divide that by the total purchase price to get a percentage (around 18%). The easies thing to do is multiply that percentage by the sales price to get the land amount at sale. If you think that the land has appreciated more or less than that percentage, you can make adjustments.

Don't forget to include the depreciation. It will reduce the basis of the property.

Next multiply the sales expenses by that same percentage and allocate them to the building and land.