Solved
Can we deduct the cost of building a shop and other improvements from the gross sale amount of a lot we bought in 2002 and sold in 2017?
The lot we bought and built a shop on was for personal use.
Yes, when you look at the cost basis of what was sold, it is what was paid for the land in 2002, plus closing costs, plus the cost of improvements made over the last 15 years.
You would then enter the sale price, date of sale, and purchase date (2002) and the cost basis of the land plus improvements.
In TurboTax you would enter the entire sale as follows:
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