Hello RaineB!
There are two ways to enter this into the return. The way you entered it is correct and showing up as an asset purchase which will show up as an expense on your Schedule E.
If however, you prefer this to show up as an improvement made to the property due to the sale of the property, then you should put the expenses in as an improvement. You will find this question(s) in the "Sold Rental Property" section.
Please go through the section again and look for home improvement cost (Costs or other basis) and enter the costs there. Then check your Schedule D to make sure the costs are correctly added to the sale.
I hope this is helpful!
Thank you!
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
