jonhan0531
Level 1
12-07-2019
06:19 AM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Is there another way to dispose of a business rental property that was demolished besides indicating it was a "Sale"?
Best Answer Click here
Labels
rbynaker
Level 14
12-07-2019
06:19 AM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
I'm not sure "demolished" counts as "disposed of in a fully taxable transaction". Isn't there still land? What's happening with the land?
itonewbie
Level 15
12-07-2019
06:20 AM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
I believe the default tax treatment for demolition would be to capitalize the adjusted basis of the demolished structure to land, which is not ideal and probably not the answer your client is looking for.
---------------------------------------------------------------------------------
Still an AllStar
Still an AllStar
