If the real property purchased is your personal home, make note in your personal records for your personal home.
There is no entry to make in TurboTax until the sale of the personal home. At the time of sale of the personal home, you would report the cost basis of the personal home as $199,000 instead of $200,000.
If the real property purchased is a rental property or business asset, you will report the cost basis of the business asset in TurboTax when you enter the Asset in the self-employment activity or rental activity. The rental property or business asset is then depreciated using the $199,000 cost and not the $200,000 cost.
If the real property purchased is an investment property, there is no entry to make in TurboTax until you report the sale of the investment. At that point, you will report the sale of a capital asset. You will report the cost basis of $199,000 cost and not the $200,000 cost. You would enter the proceeds of the sale to compute a capital gain or loss on the sale of the investment property.
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