Question

sale of rental property

Forum|Forum|5 years ago
March 14, 2021
1 reply
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I have updated my original TurboTax to Premier because I sold a single-fam residence in 2020 but cannot find where to enter the costs of all the improvements I've made to the property over the years to enhance the sale and achieve a better sale price. However, I'm still showing a LARGE amount due on taxes. What am I doing wrong? Yes, many of those improvements were depreciated through the years but does that mean that I will not get credit for the actual, original cost? The amounts owed to the fed and state are astounding!

ColeenD3

How are the improvements entered? If they were depreciated separately, then they need to be included in the sale.

In addition, you have to recapture your depreciation and that is taxed as ordinary income. If you had the property a long time, there might be quite a bit to recapture.