TaxGuyBill
Level 15
01-06-2021
01:49 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
You are supposed to allocate the sales price between the assets based on the Fair Market Value of each item. For example, let's say everything sold for $200,000. You might report the sale of the house as $198,000, and then divide the other $2000 between the appliances.
Remarkably, whenever I do it, the Fair Market Market Value of all of the appliances is the exact amount of the remaining Basis, resulting in $0 gain/loss for all of the appliances and only the home has a gain/loss. 😂