I think you are misconstruing what I said. I've claimed/paid my taxes honestly every year, and have receipts to back up all. My understanding is you can claim Capital Improvements that you've made to lower your cost basis when you sell your rental per the IRS tax formula Capital Gains = (Sale Price) - (Real Estate Commission) - (Purchase Price) - (Capital Improvements) + (Depreciation Claimed) = Amount to be taxed at 15% Capital Gains
What I am asking is: 1) Can you only claim Capital Improvements made after the unit was put into service as a rental? (e.g. If I replaced heat pump while it was still my primary residence and not yet a rental, can I claim that as a Capital Improvement?)
2) For all of the Capital Improvements I've done to the condo (before and after it was put into service as a rental), for which I have all receipts, where do these get entered into TurboTax? Is there a Rental Sales Cost Basis Worksheet, for example? Some of the Capital Improvements which occurred when I lived their as my primary (e.g. the new heat pump) was never entered because it was not a rental at the time and there was no reason to enter it (e.g. I couldn't depreciate it, again, because it was my primary and not a rental).
So I am looking to find out how/where to address Capital Improvements in TurboTax. I am sure that others have had this exact situation. Thanks for your continued help!
