Question

House turned rental basis

Forum|Forum|4 years ago
October 3, 2021
1 reply
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I bought my house in 1987, converted to rental in 1996 and sold it in oct 2020. I don't have many hard copy receipts from 1987, will goverment accept a log book of a hand written down list of improvements, date and amount spent like plumbing repipe, new fireplace, new vinyl flooring, new blinds that lasted 33 years, new paint and carpeting, new entry doors and windows, all which were acquired in the 1987 original purchase date ?

Critter-3

This should have all been handled back in 1996 when it was converted into a rental since you needed the cost basis for the depreciation you HAD to take. If you did take depreciation you already have the figure you need ... all you need to do now is sell off the assets in the Sch E section.

If you FAILED to properly take the required depreciation in the past the RUN to a local tax pro who knows how to file a form 3115 so this oversight can be corrected and you don't pay extra taxes.