Ensuring major improvements added to cost basis of rental that was sold in 2023

[RaineB]

I've entered the major improvements I made to a rental after the last tenants moved out in order to prepare it for sale (new HVAC, new flooring). I sold it in2023. I can't see where these sums have been added to the cost basis in order to reduce my capital gain. Can you tell me where I'd see that? 

For clarification, I entered the new HVAC and flooring in the “Your Property Assets” section, which comes up after you select “Sold rental property”? (With information from other answers here, I was able to enter them so that no depreciation would be taken.) 

Thanks. 

[OpeA1]

Hello RaineB!

There are two ways to enter this into the return. The way you entered it is correct and showing up as an asset purchase which will show up as an expense on your Schedule E.

If however, you prefer this to show up as an improvement made to the property due to the sale of the property, then you should put the expenses in as an improvement. You will find this question(s) in the "Sold Rental Property" section.

Please go through the section again and look for home improvement cost (Costs or other basis) and enter the costs there. Then check your Schedule D to make sure the costs are correctly added to the sale.

I hope this is helpful!

Thank you!

[RaineB]

It turned out I had entered the two improvement items under "Home improvements."

These two items were also showing up under "Your property assets." So I deleted them there. But that deleted them from "Home improvements", too.

So reentered them under "Home improvements," and they showed up again under "Your property assets." I don't have access to my Schedule D, as far as I am aware, so can't check there.