Do I need to manually add back the depreciation? How do I do that?
I went through everything. Bought the property for 144,000; sold for 146,000. Spent $4,269 on bathroom remodel. Prior depreciation is around $6,657.
Sales expenses were around $1,500.
I allocated the sale price between the house and the land.
It says I have a gain of $7.634 on the house and $766 on the land. I expected a slight loss since I spent more on the remodel that the difference between the purchase and sales price. Is the gain in this case primarily driven by the prior depreciation that is used to lower the basis?
Sorry the difficulty in following the details.
