how is depreciation recaptured on a roof that was being depreciated 27.5 years when the rental is sold?

Forum|Forum|3 years ago
February 7, 2023
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ProSeries Basic

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IRonMaN

Level 15

Unless the buyer specifically allocated part of their purchase price to buy the roof, just add the roof to the actual building cost and related accumulated depreciation.

Slava Ukraini!

Camp1040

Level 10

@IRonMaN I had my reply window open for a while and didn't see your answer.

IRonMaN

Level 15

But you have a multiple choice answer so it took a little longer 🙂

Slava Ukraini!

Camp1040

Level 10

1. You can enter zero as the selling price of the roof 2. you can allocate a percentage of the sale to the roof and the house, or 3. you can make a new asset entrty workseet with the roof cost added to basis of the rental and the roof depreciation added to accumulated depreciation and then delete the original work sheet. Since both assets are 1250 property, you may want to use option 2 or 3