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Posted by Arthur Kamlet on January 31, 2008, 11:11 pm
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>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?
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.
--
ArtKamlet at a o l dot c o m Columbus OH K2PZH
--
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