Solved

Claiming expenses incurred the year following the sale of the rental property.

Forum|Forum|4 years ago
April 7, 2022
1 reply
0 views

A rental property was sold and reported in 2020, and additional expenses associated with this sale occurred in 2021. How does one report these expenses the year after the sale has taken place?

Best answer by PatriciaV

If you want to report this as a capital loss, you may enter this through the Step-by-Step interview under Investment Income with no Form 1099-B. This will allow you to enter the information for Form 8949 without following the underlying worksheets.

If you have already entered investment sales, look for the "Add More Sales" button at the bottom of the list. Follow the prompts to enter the investment loss.

V

Vanessa A

You generally can't. The year you dispose of the property is the final year to take expenses for the rental.

What type of expenses did you incur the year after the sale?

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

K

KnuckleheadFredAuthor

In the sales agreement, there was a provision that the seller would construct a new septic system for the property. The cost was estimated and there was an escrow account established. Delays force the project into the following year (2021) and the cost exceeded the estimate by approx. $15,000.

I was going to start with form 8949 (part II)...check box F...and then enter the loss in column H...and then proceed to schedule D.

Turbo Tax won't let me open form 8949 myself.

PatriciaVAnswer

Employee

If you want to report this as a capital loss, you may enter this through the Step-by-Step interview under Investment Income with no Form 1099-B. This will allow you to enter the information for Form 8949 without following the underlying worksheets.

If you have already entered investment sales, look for the "Add More Sales" button at the bottom of the list. Follow the prompts to enter the investment loss.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"