Skip to main content
TurboTax
Community
TurboTax
Community
TurboTax
Community
D
dhilman2
February 9, 2023
Question

When I sold my rental July 1, 2022, I had repairs to make of approx $10,000 negotiated in an agreement to complete before closing. How and where do I deduct those?

  • February 9, 2023
  • 2 replies
  • 0 views
No text available

2 replies

HopeS
HopeS
February 9, 2023

If you made the repairs before closing then you would add the $10,000 to your cost basis. The cost basis is the amount paid for the property plus improvements.

 

However, if the $10,000 was part of your Closing Expense (Check your Closing Statement), then this would be a selling expense.

 

In either of the above treatment, your gain on sale would be reduced by $10,000.

 

See additional guidance in the link below:

 

Sale of Rental Property

 

 

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"
M
Mike9241
February 10, 2023

please see this link. 

https://www.stessa.com/blog/fixing-up-expenses-sale-of-rental-property/#:~:text=Expenses%20to%20fix%20up%20a%20rental%20property%20for,repairing%20drywall%2C%20and%20furnace%20and%20air%20conditioning%20work. 

 

 

if truly repairs I would not report them as part of the sale but as repair expense on schedule E. 

TurboTax Sign In Widget
TurboTax flag icon

Unlock tailored help options in your account

Create an account
TurboTax Expert Assist
TurboTax Expert

Get answers to all your tax questions

Our experts are available on-demand, no appointment needed. Get help all year long with TurboTax Expert Assist.

Terms & ConditionsAccessibility statement
Intuit
TurboTax Credit Karma QuickBooks MailChimp

©1997-2022 Intuit, Inc. All rights reserved.
Intuit, QuickBooks, QB, TurboTax, ProConnect, and Mint are registered trademarks
of Intuit Inc. Terms and conditions, features, support, pricing, and service options
subject to change without notice.

Security Certification of the TurboTax Online application has been performed by
C-Level Security.

By accessing and using this page you agree to the Terms of Use.

Accessibility

TRUSTe nResult Certified e-File C-Level Security Certification