Need help on rental sale

[Burke]

Ah, yes. The good OLD, old days....... That would have been prior to 1981 as I recall.....
and I remember that pesky "salvage" value. Also that sum-of-years-digit method? Whoever dreamed that one up?

[taxxcpa]

SYD method

Ah, yes. The good OLD, old days....... That would have been prior to 1981 as I recall.....
and I remember that pesky "salvage" value. Also that sum-of-years-digit method? Whoever dreamed that one up?

In my old accounting books several kinds of depreciation were described. One that I doubt anyone ever used was called the "sinking fund method." I don't remember how it worked, but it was unique. I don't think the IRS allowed that method. If you used DDB in the 1950s or 1960s, it did not switch to SL, so some salvage value was built in.

[superman]

test

test to see if this works

[Davc]

In my old accounting books several kinds of depreciation were described. One that I doubt anyone ever used was called the "sinking fund method." I don't remember how it worked, but it was unique.

That term is no longer used for depreciation. It's now only relevant to preparing government budgets.

[MAJ]

Where did Bugs Bunny enter this picture?

my understanding of sale of rental property is the same as yours. i was taught that the depreciation is taxable as ordinary income (so whatever t/p rate happens to be, depending on other income) and the gain is reported on form 4797 where it is seperated that way. and then you go on to the installment sale., and the schedule D. AND you do need to seperate the land. the ordinary income will be taxed completely the first year and capital gains every year of the installment. seperating it into two capital gain rates confuses me.

I don't know but when I started reading your post I thought of Bugs Bunny in the episode where he could so many denominations of coins into the vending machine. Do you remember that episode.....

Hey - I had a very Loooooong week. And I am relaxing now - catching up and having a few beers..... This made me smile..... Thx..