Do closing costs when selling a rental property get deducted from selling price? This includes commissions, deed prep, notary fees and attorney fees and roll-back taxes.

[abs96]

Selling price - 119,000  Closing costs - 14,171 of which 4,882 is for roll-back taxes and 298 is real estate taxes, deed prep - 150, notary fees - 10, commissions - 7140, attorney fees - 500, transfer tax - 1190

How do I allocate an asset attached (sidewalk) to rental property sold that is not fully depreciated?  Basis - 1616, prior deprecitation - 189, current yr depreciation - 22.

[sjrcpa · Accepted solution]

Yes for "deed prep - 150, notary fees - 10, commissions - 7140, attorney fees - 500, transfer tax - 1190

No for "298 is real estate taxes"

What are " roll-back taxes "?

Add the cost and accumulated depreciation of the sidewalk to teh building's cost and depreciation. I gather that ProSeries does not have a Bulk disposition feature?

[TaxGuyBill]

Unfortunately, ProSeries does not have have Bulk disposition feature.  The usual method is to allocate the sales price between all assets (in many cases, the allocated Sales Price to the smaller assets just happens to be the exact same amount as the remaining Basis, resulting in a $0 gain/loss ):smile:

[abs96]

Rollback taxes are real estate taxes because the property was in the "clean and green" program.  They had to take it out of that program to sell the property.  The seller had to pay these taxes,  The $298 real estate taxes, I would assume could be deducted as an expense on Schedule E.