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Jaro
New Member

Rental property - how to indicate classes of property linked to the rental, which were included in sale (but for which I didn't receive money)?

I disposed of a rental property, but had three other classes of properties that were linked to the rental property and still had UCC at the start of the year. When I disposed of the rental property, two of the three classes (100% & 55% rates) of properties were included in the sale (did not get any money for that) and I kept the third property (100% rate). 

How do I indicate the following:
1) The two classes of property (of 100% and 55% rates) that were included in the sale and for which I did not receive money; 
2) The class of property (equipment at 100% rate) that I kept; 
3) Would they be indicated as a terminal loss and if so, how do I do that?;
4) How do I get rid of the remaining UCC for the property class that only has a 55% rate?5)
5) How do I fill out Column 9 of Area A of form T776? 

6 Replies

Rental property - how to indicate classes of property linked to the rental, which were included in sale (but for which I didn't receive money)?

All assets that were sold with the property should be disposed at UCC at the start of the year. If you kept an asset for yourself,  it is a deemed disposition to personal use and generally it is at FMV on the date of disposition.   It should not be reported as a terminal loss as  value of this items were included in the sales price of the property.

Jaro
New Member

Rental property - how to indicate classes of property linked to the rental, which were included in sale (but for which I didn't receive money)?

Thank you very much for responding to my question. However, do you know how to get rid of the positive balances in the UCC at the end of the year, as I cannot really indicate these items as 'having sold'...the rental unit's sale price would not be accurately reflected if I reduce the sale price and add separate sale prices for those items. All proceeds from the sale of the rental unit have already been declared as capital gains, so doing that would incorrectly increase my capital gains amount.  Thanks.

Rental property - how to indicate classes of property linked to the rental, which were included in sale (but for which I didn't receive money)?

You dont need to reduce the sale price, you just need to record disposition of assets at UCC so the balance in the asset account is 0.
Jaro
New Member

Rental property - how to indicate classes of property linked to the rental, which were included in sale (but for which I didn't receive money)?

Thanks, but if I record the dispositions of assets at UCC, wouldn't those amounts (the UCC of the assets) increase the amount indicated as proceeds, as that would be added the UCC amounts to my proceeds, no?  Thanks!

Rental property - how to indicate classes of property linked to the rental, which were included in sale (but for which I didn't receive money)?

it will just dispose items at no loss/no gain so all gain is reported through property disposition. The purpose is to clear your other classes    on the rental form.
Jaro
New Member

Rental property - how to indicate classes of property linked to the rental, which were included in sale (but for which I didn't receive money)?

Thanks so much for your very prompt and clear response!