Sale of a rental porperty

Forum|Forum|1 year ago
March 22, 2025
1 reply
4 views

Taxpayer sold rental property. Checked off complete taxable disposition on Schedule E Worksheet. Entered date of sale in Asset Entry Worksheet for the property sold. Several improvements were made to the property and depreciated appropriately but are not included in the basis. Why are the improvements not being included in the basis on 4797 part 3?

ProSeries Professional

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Camp1040

Level 10

You have to sell the assets separately on each asset entry worksheet or create an new asset with all the improvements and prior dep and the main rental. One issue if you proceed with the ladder is you cannot separate 1245 property form 1250.

BobKamman

Level 15

@Camp1040 has a cold this morning, meant to write "latter," I thought for a moment it was the hip way of saying algorithm but the answer is correct, I combine all the assets into one and don't worry about whether some Section 1250 slips through the cracks.

Camp1040

Level 10

@BobKamman As I was climbing onto my attached elliptical stand up desk and replying to this post, somehow the word ladder was typed. Lesson learned, I won't make that mistake again. 😊

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