Hi Marc: Thanks for your detailed reply. I actually had got to those screens, but I was confused about what to add as sale expenses.
Would I enter ALL my expenses on the second screen-shot you sent?
-- commission paid + related closing costs
-- major improvements (HVAC and flooring)
-- all other expenses related to the sale -- duct cleaning, new kitchen sink, staging costs etc
I thought I'd need to break down the expenses somewhere before adding them as a lump sum here. Or is it OK to add them as a lump sum without further explanation? All the expenses come to a total of almost $50,000, so it seems I'd need to show the IRS my "work" on that somewhere.
And how do I allocate the expenses between the house and the land? I could use the same ratio as I used when I established the depreciation. Or I could use the ratio that the county government used on my last assessment.
Thank you!
