Condo sale with capital assessments

[David]

TP sold condo in 3/14 that was used both as rental and primary residence. 

There have been 2 capital assessments. One in 11/12 and the other in 4/13.

The home sale adjusted basis worksheet has one line for capital assessment amounts. Therefore, the capital assessment in 2013 will be treated as though it is a long term capital gain.

Should this assessment be broken out as it's own sale and the resulting gain treated as ordinary gain? Or should it just be thrown in to the total cost of the condo and treated as LT cap gain?

Thanks.

 

[michaelmars]

added to cost basis

 

[Abby Normal]

Were the assessments set up as assets and depreciated? Were they expensed or partially expensed?

Whatever was not expensed should just be added to basis, but you may have an issue with allowable depreciation that was not claimed.

 

[michaelmars]

Were the assessments set up as assets and depreciated? Were they expensed or partially expensed?

Whatever was not expensed should just be added to basis, but you may have an issue with allowable depreciation that was not claimed.

 

​thank you for taking my quick answer deeper, I agree with what you say.