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K
KenjiT
April 16, 2024
Question

Where to enter the remodeling cost for my rental property that was sold right after the remodeling

  • April 16, 2024
  • 1 reply
  • 0 views

I renovated my rental property last year and sold the property right after the remodeling. 

 

How and where do I put this cost in Turbotax?

 

Should I not enter this cost as another asset for this rental property since it was never rented out after the remodeling? 

1 reply

KrisD15
KrisD15
April 16, 2024

If the property was not an active rental when the repair were made, add that expense to the basis when sold.

In TurboTax, you might need to select "Converted to personal use" first, to get it off Schedule E and then enter it as a "Sale of Business Asset" to report the sale. Be sure to add the repair to the basis but also report the prior depreciation.

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K
KenjiTAuthor
April 16, 2024

Thank you for your quick response!

 

I went to the "sale of business property" section and found several options. 

Two options seem relevant: 

(a) Sales of business or rental property that you haven't already reported

(b) Sales of real estate, cars, or anything else for which you receive payments over two or more tax years (installment sales)

The first one looks more relevant and the second one is not so clear.  Which one should I select?

 

Re: adding the expense to the basis, do I reflect this cost by reducing the "total sales price" by the renovation cost?

 

 

 

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