SALE OF RENTAL PROPERTY

[jesdq1]

When there is no bill of sale outlining the sale price of each asset sold (refrigerator, washer , dryer, furniture etc).  Should you allocate those assets based on the sale price? Example: Total Sale price: $100,000, items sold: building , refrigerator. Refrigerator on depreciation schedule with a cost basis of $1,500, building on dep. schedule with cost basis of 75,000. So,1,500/76,500 for refrigerator and 75,000/76,500 forbuilding? Selling price of refrigerator is .020*100,000 = 2,000 and building .98*100,000=98,000?

[IntuitJim]

You should ask the taxpayer to give you a breakdown of the sale price allocated to the assets, based on the FMV of the assets. Refrigerators generally depreciate, while buildings generally appreciate- so the original cost is probably not helpful. 

[jesdq1 · Accepted solution]

Thank You, yes that makes perfect sense. I was not thinking about a realistic  FMV!!