You will need to enter the improvements in the Asset section of the rental activity as follows in the federal interview section.
- Select Income & expenses
- Scroll down to see All Income and select Rentals, Royalties, and Farm
- Select Rental Properties and Royalties (Sch E)
- Select Edit Another Rental or Royalty property as prompted.
- Select Yes to review your rental and royalty information
- Continue through the screens until you see the page titled Rental and Royalty
- Select Edit to the right of the rental activity
- On the next screen, select Assets/Depreciation and enter your improvements in this section.
They will then be included to help determine your cost basis for the sale of the rental property.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
