Posted by JHyre in Ohio on February 12, 2003 at 10:48:23:
You have sold 15% of the property…reduce the basis by 15%, enter cost of goods sold of 15k and sales proceeds and cash received of 16k each, for a net gain of 1k. Yes to both forms.
accounting question / partial sale of RE - Posted by Bob
Posted by Bob on February 11, 2003 at 19:01:44:
How would you record the partial sale of an office building. Suppose the office was $100k and 15% was sold to the city. Cost basis will be lowered by 15% but how do you report the income this year and on what form. (city paid $16k - $15k cost basis = $1k capital gain for 2002) Business is an S-Corp. Will it be on the 4797, 8824 ?
Thanks in advance.