Residential Rental Property Improvements

Forum|Forum|3 years ago
December 5, 2022
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I have a Residential Rental Property owned and rented by myself. I replaced the roof and furnace about a month before I sold it about one month later. I entered these two improvements into the tax software as Depreciable Property. When entering these two improvements into a tax software I need to enter the sales price. However, the house sales price included the sale of these two improvements. How do I determine the sale price of these two items or can I just enter "0"?

Not A Product Question

Mike9241

since these were installed so close to the date sold I would allocate enough of the net sales price (sales price less a prorata share of selling expenses) to equal the original cost. so the only gain is equal to the depreciation allowed.

dlschroedrAuthor

So to clarify. I would then also when entering the sales price of the House, I would first subtract the cost of each of the items (plus a prorated share of the selling expenses) from the amount that I received from selling the house?