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June 12, 2024
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Sale of residential investment property

  • June 12, 2024
  • 1 reply
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I have sold a residential investment property.  Over the years that I owned the property, I made significant improvements.  These improvements appear on the depreciation/asset list along with the actual structure.  If I understand correctly from another posting in the TT Community, I must allocate the sale price to each item on the asset list, and the land as well.  Does that mean applying a portion of the sale proceeds to each item?  If so, how do I determine how much of the sale proceeds went towards that item?  Such as a new roof? or the new siding? or the new countertop? etc. etc. etc.  

All items on the asset list were included in the sale, and the sale proceeds went to all items on the asset list.  In other words, it was a "package deal".  Thanks for your help.

    Best answer by M-MTax

    If you have a gain then you just need to allocate $1 to each of the other assets and the program should take care of the rest.

    1 reply

    M-MTax
    M-MTaxAnswer
    June 13, 2024

    If you have a gain then you just need to allocate $1 to each of the other assets and the program should take care of the rest.