My question is I sold TN property for 80k
you report the sales in the investment section of your federal return. Tennessee does not have an income tax so there is no return to file. if this was rental property you would report the sale through Turbotax's schedule E worksheets. The ones reporting the assets
and then purchased MS property for 55k.
what was it used for? personal or rental . personal - nothing gets entered other than possibly mortgage interest and real estate taxes paid on schedule A. if rental, it gets reported on Schedule E.
I put extra money into both properties.
TN: if these were capital improvements (from your description they appear to be), you would include them in the cost provided the property was not a rental. if it was a rental you need to file form 3115 to adjust for the depreciation you should have taken. if you don't, the tax laws require you to recapture depreciation allowable so you would need to recapture as income, a deduction you never took.
MS if not a rental keep a record for when you sell. if capital improvements or costs and it's a rental these costs would get entered for depreciation purposes. A MS nonresident return may be required if it is a rental
What forms do I use to add this info to my tax return? Also I put extra money into both properties to add a portable building and foundation. Are those expenses added to anything from an income tax perspective? Buying and selling property from a tax perspective is all new to me. Any advice is appreciated.
