Sold Rental Property

[Eli]

Clients built a 4 apartment building. They rented out 3 of the apartments and lived in the 4th one. When I set it up in the asset manager I used the price for 3 of the apartments as the basis. I set the land as a non depreciable asset and listed the appliances separate as well.

Now they have sold the whole property. How do I show the sale of the land? Do I need to figure and allocate a % of the total sale price for the land?

Do I need to use the bulk disposition tab in ATX for this sale?

Thank you!

Eli

[jklcpa]

Yes, group the assets by type (1245, 1250, land, personal) and allocate the selling price. Then report the sale by each type. You only need the bulk dispositions if >1 asset of a type (ex: building & then multiple improvements/renovations at different dates, or multiple appliance purchases). Otherwise, if just one asset in its type, just use the other disposition tab (not bulk).

[Eli]

Yes, group the assets by type (1245, 1250, land, personal) and allocate the selling price. Then report the sale by each type. You only need the bulk dispositions if >1 asset of a type (ex: building & then multiple improvements/renovations at different dates, or multiple appliance purchases). Otherwise, if just one asset in its type, just use the other disposition tab (not bulk).

Thank you for your assistance, it is much appreciated!!

Eli