Irene2805
Expert Alumni

Get your taxes done using TurboTax

No, not yet. - The "larger ticket" improvements should have been entered as assets in the year they were put into service (installed) and depreciated.  If you did not, when you sell your rental home, the IRS requires that you recapture all allowable depreciation to be taxed (i.e. including the depreciation you did not deduct).

 

Before you enter the sale of the property, enter the improvements you made previously.  Make sure you enter the date of service (even though it may have been in previous years).  TurboTax will then calculate the depreciation you should have taken.

 

THEN, you can apply a portion of the property's sales price and sales expenses.