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Josh Atkinson
  • Residential Real Estate Agent
  • Oklahoma City, OK
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Allocating sales prices on a package sale

Josh Atkinson
  • Residential Real Estate Agent
  • Oklahoma City, OK
Posted

Let's say you have a shopping center that is fully depreciated. You then build a dollar store on an out parcel and hold it for a year. In order to save in taxes can you sell both properties as a package deal but allocate more of the sales price towards the dollar store property that is eligible for capital gains? Just wondering if this is a legitimate way of avoiding the full effect of a recapture. 

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