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Sale of Residential Real Property

I am selling my 25% TIC interest in an apartment building that I acquired in

1993. I do not live in the building. The selling price exceeds the basis (and the original purchase price).

Do I understand that I am required to allocate a part of the sale price to personal property that I have been depreciating (carpets, refrigerator, stove)? If so, any suggestions as to how one determines the current value of a roomful of 3 year old carpet (and 2 year old carpet and 4 year old carpet) , as well as used appliances of various ages. I am talking small amounts here - my share of the cost of a refrigerator is $100, my share of the carpet in some of the units is $400. Looking for practical, rather than theoretical, advice.

Is the personal property what is termed Section 1245 property?

Thanks for your help.

Robert Leavitt

Reply to
BobLeavitt
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Yes, the carpet and appliances are Section 1245.

One common method for allocating sales price to Sec 1245 property is to say its the same as its curently depreciated value.

That has the handy dandy effect of generating zero gain or loss on 1245 property.

Reply to
Arthur Kamlet

Unfortunately the buyer would prefer a higher value, since it would allow him to depreciate it faster than if that money were allocated to the real estate.

Stu

Reply to
Stuart Bronstein

Then have the buyer do his homework, and provide values and substantiation.

Reply to
inky dink

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