Thank you @Carl. Yes, I've been depreciating the condo on a 27.5 year cycle and TurboTax seems to be handling the Depreciation Reclamation. I am not AD MIL and did not live in the unit for 2 out of 5 years.
I'm still confused on Capital Improvements. My understanding was that the calculation for Capital Gains was Capital Gains = (Sale Price) - (Real Estate Commission) - (Purchase Price) - (Capital Improvements) + (Depreciation Claimed) = Amount to be taxed at 15% Capital Gains
But I do not know where to add it the Capital Improvements so that they will lower my taxable cost basis. I've made several Capital Improvements over the 20+ years that I've owned the unit. Would you please provide some guidance/clarity on this point? In TurboTax, I have 3 items listed in "Your Property Assets" that show depreciation: 1) The condo itself (with the yearly depreciation on the 27.5 year term), 2) 2016 Refinancing fees (still has some depreciation), and 3) the floor/tile upgrades I did in 2018 (I must have entered this in 2018 to depreciate, and it shows zero Depreciation but $2265 under Section 179 column). I'd like to include this tile upgrade as part of the Capital Improvements. So back to my original question, where do I enter Capital Improvements? Also, can I still claim the above tile upgrade as a Capital Improvement? Thank you!
