In the past a client purchased business (residential) rental property, and at that time from the total purchase cost the building, land, and amortized loan fees were separated. Property was sold in late 2007.
I know the "unused" loan fees can be taken in full in the year of sale.
What is the best/easiest way to do this? Show a Form 4797 "sale" of the loan fees for zero, or just adjust the basis/selling price of the asset to include the points, or perhaps list a separate line item entry on Sch E along the line of "recovered loan costs" or something similar. I can't in clear conscience consider the "points" a capital asset, can I??
The Sch E already shows the 2007 allowable depreciation and amortized costs prior to the sale, and those amounts have been factored in to the Form 4797 disposition entries.
I'm sure there is a simple answer.......my (remaining) brain is just about pickled these days. For someone who deals with this type problem all of the time, I feel sure there is a "simple" answer.
Thanks for your help!
FE
I know the "unused" loan fees can be taken in full in the year of sale.
What is the best/easiest way to do this? Show a Form 4797 "sale" of the loan fees for zero, or just adjust the basis/selling price of the asset to include the points, or perhaps list a separate line item entry on Sch E along the line of "recovered loan costs" or something similar. I can't in clear conscience consider the "points" a capital asset, can I??
The Sch E already shows the 2007 allowable depreciation and amortized costs prior to the sale, and those amounts have been factored in to the Form 4797 disposition entries.
I'm sure there is a simple answer.......my (remaining) brain is just about pickled these days. For someone who deals with this type problem all of the time, I feel sure there is a "simple" answer.
Thanks for your help!
FE
Comment