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I disposed of a broken washing machine in a rental property and purchased a new one. My question is how to handle the disposal of the old one. Should it show up on form 4797 in Part I or Part III or somewhere else? If on 4797 should it have $0 sale value (it was fully depreciated and I received no $ for it). Thanks in advance

Rentalnovice
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  • Assuming you are in the US, better add a country tag, it will be handled like any other equipment/asset that depreciates, is discarded and replaced, you don't need to do anything beyond that - unless you are doing all this manually. Most tax/ledger software (such as TurboTax / Quicken/Quickbooks) will handle the property logistics for you as long as you provide the data needed in a timely manner and answer the questions that relate to it correctly. If you are doing it manually, you really should look into some on hand legal tax advice instead. – GµårÐïåñ Apr 01 '17 at 23:40

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It was fully depreciated. So its value was zero. You don't account for it, you just add the new one and depreciate it over its useful life.

JTP - Apologise to Monica
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