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?
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.
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