Sale of Rental Real Estate Figuring Out the Basis
When selling rental real estate, it is important to figure out the basis of the property.
Here is how it works:
Minus Purchase price
Minus the total of all depreciation taken on the property (or not taken but were entitled to)
Plus the costs of capital improvements and fix up expenses to get it ready for sale
Minus the depreciation taken on the improvements
Plus the costs of sale including the agent’s commission