sale of business

Forum|Forum|2 years ago
December 14, 2023
1 reply
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Hello, sold 40 unit apartment complex, several assets listed separately, due to remodel over 2 year period, beginning in 2009. Not sure how to figure the amounts. This is an installment sale. Thanks

TurboTax Business Windows

Best answer by Critter-3

You will sell off all the assets listed individually and you will have to calculate the proration of the sales price and cost of sale yourself as the program will not do this for you automatically.

Ok ... a simple example of ratios ... if you have more assets than the example then you will have more lines. Remember if you divide a big number into a littler number you get a % ... thus 5000/100,000 = 5%

original cost basis ratios Sales price cost of sale

home 80000 80% 160,000 8,000

land 15000 15% 30,000 1,500

roof 5000 5% 10,000 500

totals 100,000 100% 200,000 10,000

All you need to enter into the program is the % of sales price & % of cost of sale for each asset ... IGNORE the depreciation taken as it is immaterial for the sales of the assets.

Critter-3Answer

You will sell off all the assets listed individually and you will have to calculate the proration of the sales price and cost of sale yourself as the program will not do this for you automatically.

original cost basis ratios Sales price cost of sale

home 80000 80% 160,000 8,000

land 15000 15% 30,000 1,500

roof 5000 5% 10,000 500

totals 100,000 100% 200,000 10,000

All you need to enter into the program is the % of sales price & % of cost of sale for each asset ... IGNORE the depreciation taken as it is immaterial for the sales of the assets.

Teri KernsAuthor

Thanks for the reply. On the dispose of asset screens, it is asking for a dollar amount. I have approximately 50 or so assets set up for this LLC. Sold March 2023. Say the total sales price is 3 million. I have the buildings as 1 asset, there are 20 total buildings, one asset, the rest of assets are, like roof, windows, cabinetry, etc. Assets were set up as the buildings were remodeled over a 2 year period. Do I add the original cost of say, the first asset for the buildings, then add prior depreciation, and current depreciation. I'm really confused on how to get the cost of the assets. and not sure where the recapture comes into play. Thanks for any help. Have never done the sale of a business. It's in an installment sale, husband and I are the banker.

Rick19744

Employee

Since you apparently don't have a sales document that breaks out the sales price by asset group, etc., I would use the method noted by @Critter-3. Drop your assets original price into an excel worksheet, determine the percentage, and let excel determine the sales price allocation. You then enter those amounts into TT.

This could be challenged, may not lead to the best allocation, however, it is all you have at the moment.

*A reminder that posts in a forum such as this do not constitute tax advice.Also keep in mind the date of replies, as tax law changes.