Posted by Randy (SD) on April 08, 2005 at 13:05:47:
I’m no tax expert, that’s what I use computer software for but if selling you do not take into consideration remaining depreciation. Your depreciation stops the date of sale.
Posted by Randy (SD) on April 08, 2005 at 13:05:47:
I’m no tax expert, that’s what I use computer software for but if selling you do not take into consideration remaining depreciation. Your depreciation stops the date of sale.
Calculating Gain on Sale of Rental - Posted by Ellen
Posted by Ellen on April 08, 2005 at 09:09:10:
When calculating the gain on the sale of a rental, how do you take into consideration the items that have not been fully depreciated? Example: Carpeting and appliances with three years remaining to depreciate.
Re: Calculating Gain on Sale of Rental - Posted by Mike McD
Posted by Mike McD on April 08, 2005 at 17:23:48:
Hi Ellen. I am a CPA & I deal with this question all the time! Here is an example, which will explain it to you (note that I have not considered closing costs, depreciation recapture and other issues, so as not to confuse you):
Your Taxable gain would =
Sales Price of Property = $150,000
Less: Cost of Property (what you paid) = ($90,000)
Less: Capitalized costs (eq. - a new refrig & oven) = ($1,000)
Addback: Depreciation taken to date on property = $10,000
and Depreciation taken to date on refrig & oven = $500
Here is the calculation:
$150,000-$90,000-$1,000+$10,000+$500 = $69,500 gain!
Re: Calculating Gain on Sale of Rental - Posted by Dave
Posted by Dave on April 08, 2005 at 14:35:04:
I suppose you can allocate a portion of your sale price to the individual depreciable items. I usually just ignore allocation. Instead, I just enter a sale price of zero for the separate depreciation schedule items, then let the tax software figure out what to do from there.