Sale of Rental Real Estate Figuring Out the Basis

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When selling rental real estate, it is important to figure out the basis of the property. 

Here is how it works:

Sales price

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

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lois fishman