Question

Turned home into rental property, then sold it

Forum|Forum|4 years ago
April 10, 2022
2 replies
0 views

I turned a residential house to rental property. Bought the house originally in 2004 for 140k, refinanced right before turning to rental in 2009 for 157k. Sold it last year ( 2021) for 223k. Didn't receive 1099s. The net profit ( cash to me) was 125k. My calculation for the land percentage is roughly the same throughout the years.

1- what amount should I use for (the total cost )?

2- what amount goes on (asset sales price)?

3- assuming I used the amount that was paid to me ( 125k) , should the calculated sales price of the land , if added to the asset sale price, equal the 125k? ( asset sale price $ 88000+ land sale price (at %30) $37000 = $125000) ?

Thanks

ColeenD3

Your cost is what you originally paid for it. Your sales price is the contract sales price on the HUD-1. What you received in your hand is irrelevant. However, you can add certain closing costs to the basis.

Seller closing costs are made up of several expenses. Here’s a quick breakdown of potential costs and fees:

Agent commission
Transfer tax
Title insurance
Escrow and closing fees
Prorated property taxes
Credits toward closing costs
Attorney’s fees

H

HAQ63Author

How about improvements? Where do I add those? Especially the ones that were done before I started renting the house out. And the ones that were done right before I sold it ( new roof and deck..)?

V

Vanessa A

The roof and deck would be listed as assets to be depreciated and listed as sold as part of the sale of the house. As you walk through the steps in TurboTax, you will be able to add the roof and the deck as separate assets that were sold. You will allocate a portion of the sale to those assets.

Improvements you made prior to renting would be added to the cost basis of the house and deducted from the profit when you sold the house.

You can request TurboTax live help or have a TurboTax expert prepare your return for you. If this is the route you would like to take, you may need to file an extension as we are very close to the filing deadline.

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Carl11_2

Employee

@HAQ63 you have posted multiple threads on this board about this, and in some, issues have been identified that you really need to seek professional help for. Now you will do what you're gonna do, and it affects nobody but you of course, But still, I highly recommend you do seek professional help, or no telling when or if an audit will appear "out of the blue" a few years down the road.

https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/re-asset-land-sales-price-expenses-for-rental-that-was-sold/01/2674338#M89173

https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/re-asset-land-sales-price-expenses-for-rental-that-was-sold/01/2672749#M89071

H

HAQ63Author

Thank you. I know I need professional help, the problem is the time limitations with no one ( that I was referred to) is available . What do you think about turbo tax live? helps?