Rental Unit Destroyed 2019 Remodeled 2020/2021 NEVER Rented SOLD 2021

1. You will want to look at prior year returns - schedule E and forms 4562 for reference.

2. The remodeling will be added to the basis of the property.

3. You did not live in and use the house so it is not personal use. 

If you were only depreciating the house, we could go straight to the sch D for the sale. If you were depreciating a bunch of other things, it may be easier to create the sch E again.

If only depreciating the house: 

Enter it as a second home which is also investment property. See Where do I enter the sale of a second home, an inherited home, or land on my 2020 taxes?

The basis of the rental is:

You know how much you paid for the house originally. That is $x.

You know how much you spent on improvements to the property $y.

You know how much you paid to sell the property with realtor fees, etc, $z.

Your costs basis is $x +$y + $z.

If the house was depreciated or should have been, subtract the depreciation allowed or allowable from the basis.

If you were depreciating the house along with other items: 

Please see my answer here for entry help. Each asset must be disposed of individually. All other assets will be sold for $0 since only the house and land sold for money.