# Calculating Gain on Sale of Rental - Posted by Ellen

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):

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.