Evaluate the exit with the full depreciation and transaction history. Distinguish unit-specific construction from shared facilities governed by agreements.
Preparation resource. Record completion does not determine eligibility, deductions or tax savings. Ask your qualified tax professional to resolve the facts and applicable rules.
What this file should establish
Collect original basis, improvements, prior depreciation, ownership and draft terms. Ask for an after-tax comparison with costs and timing. Do not treat a study's first-year projection as a complete lifetime benefit.
Distinguish unit-specific construction from shared facilities governed by agreements.
A situation to work through
A townhouse owner pays for an exterior project managed by an association.
For this situation, start with deed. Identify the period and legal owner before combining it with the other records. Keep the original source and explain any adjustments in a separate reconciliation.
Review point
Keep the governing documents with the cost record.
The analysis ignores prior depreciation or changes in sale terms.
Question for the reviewer
How do the expected transaction and depreciation history change the comparison?
Expected handoff
A sale-review file with dated draft assumptions.
Separate facts supported by documents from estimates and unresolved assumptions. Assign each missing item to a responsible person and a date. Send the reconciliation alongside the source references so the reviewer can trace each conclusion.
Your preparation worksheet
Enter a reference to the document, the person who can supply it and the unresolved question. Use file names or locations rather than account numbers or other sensitive information. Entries stay in this page until you close or refresh it. They are not sent to us or saved automatically. Export before leaving.
Record or decision
Source reference
Status
Responsible person
Open question
deed
association terms
common-area records
improvement invoices
lease
sale structure
expected date
depreciation history
proposed allocation
selling costs
Mark not applicable only after noting why. A collected record can still require correction. Review the exported file before sharing it with your adviser.
Use the following primary guidance to frame the questions. The worksheet organizes facts; it does not replace analysis of the relevant year, ownership, elections or state treatment. Record the applicable period, confirm the source version and retain the preparer's written conclusions with the supporting documents.