Rental sale

Forum|Forum|3 years ago
February 2, 2023
1 reply
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Bought in 2007 lived in it, rented out from 2010 until June 31st 2022, list and sold(closed) august 15 2022….when I get to the assets page, I go thru each one of those assets and enter the disposition date? Would that be the day the renters moved out or 2 months later when I closed on the sale…I did improvement prior to renting it out how are those included in the process? I know how to calculate the original cost basis based on the original purchase price and any improvements etc…but how do I enter that. Thanks

JosephS1

You would use the date of sale for the disposition date. To avoid having all your assets/improvements counted in the sale if they were not allocated a specific sales price you should enter the date of disposition and -0- for the sales amount for each item. The improvements made prior to closing include as additional cost basis to the rental building. There is an adjustment page for additions/subtractions to basis after the basic information is entered. If the adjustment page does not show, add the amount of improvements/ renovations made in the interim to the cost of the assets on the sales page.

@jonpagel

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