@DenyseRRussell wrote:
We built an ADU in 2020
Was the ADU amortized in TUrbo Tax?
Do I have to do sometnig special in filing taxes because I rented it? Or do I just file the capital gains for the sale of my house?
Was the ADU a newly added portion of the building (or a separate building)? Or did you just remodel the existing building (a portion that used to be your home)?
If you are not sure if you entered it, look in the rental section under "assets" or "depreciation". You SHOULD have entered it there. If you did not, then you may need to file Form 3115 to 'catch up' on the depreciation that you missed. For Form 3115, I recommend going to a tax professional this year, one that is experienced with Form 3115.
You will probably be reporting it as TWO sales - one for your home and one for the ADU/rental. You will need to divide the sales price between the two. But that may depend on your answer to my first question above and the EXACT dates of the creation of the ADU and sales date.
