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Robin, You answered a question for me last week: My

Hi Robin, You answered a...

Hi Robin,
You answered a question for me last week:
My question:
I am selling a rental property that I bought in 1981 with a partner the total cost was $90,000. We each took 50% of depreciation over the years and then I bought out the partner in 2009 for $30,000. I then took depreciation on the new purchase of $30,000. When I sell the property, what is my costbasis? My half of the $90,000 plus the $30,000? And how do I calculate the depreciation recapture?

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I am selling the property (in escrow now) for $325,000 with selling expenses of $27,000 and improvements of $26,000.I am trying to figure out the taxes I will owe.
10 March 2018 05:54
Here was your answer.
Your basis is the Half you paid plus the $30k plus improvements less the depreciation you claimed ( on your half and then on the additional $30k after you bought the other half).
$45k + 30 + $26k - depreciation you claimed
The partner's depreciation is not relevant.
My new question is: I am filling out form 593-E and wondering where to put the $30,000 for the buyout. I am thinking Line 4 (price you paid to purchase property) is $45,000, and the $30,000 would be line 11 (other increases to basis). Is this correct?

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Answered in 10 minutes by:
3/16/2018
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 17,645
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I would add the $30000 to the line 4 amount showing it with the original amount you paid for your half. In other words add both purchases together. $75k on line 4 would show the additional purchase and your original.

Robin D.
Robin D., Senior Tax Advisor 4
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Satisfied Customers: 17,645
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Customer reply replied 1 month ago
Great. Thanks so much.
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