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February 21, 2021
Question

Can I add the cost of a well and road to my original base price of land that I purchased and if so how do I do it?

  • February 21, 2021
  • 1 reply
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Can the purchase price of land be adjusted based on improvements to the land?

1 reply

February 24, 2021

Yes, you can add land improvements to the cost of the land you entered in previous years. If the improvements are not eligible for depreciation, which seems likely here, you can just change the cost basis of the land by editing the asset entry in TurboTax. 

 

You will see an option for this under Assets/Depreciation in the business or rental summary screen in TurboTax.

 

You could also just set the improvements up as new assets, but since they won't be depreciated or sold separately, it may be better to add them to the original land cost. That way if you sell it someday, you will have an easier time reporting the sale.

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