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Author: ptheland Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121061  
Subject: Re: Sale of rental property Date: 11/11/2013 3:06 AM
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I've got to go with user error.

You paid $150k for the property. Depreciation for 2010 through 2013 (I'll round a bit for the example - you'll need to use the actual depreciation you took each year) comes to about $15k. So your basis is down to $135k.

On the sale side, the sale price is $142k, less the closing costs and commissions totaling about $12k, so your net sale price is $130k.

So I'm coming up with a $5k loss.

I suspect the user error is forgetting to include the land value in the sale. While you can only depreciate the building (which you said was $110k), you still have to include the $40k of land in the sale.

--Peter
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