Hi KarenL. I am having trouble getting Turbo Tax to report the correct gain from the sale of my rental property. I have done the math on paper and there is about an $8,000 difference between me and Turbo Tax.
It seems like Turbo Tax is not taking into account the cost basis of the capital improvements I have made over the years. Is there anything special I need to do to make that happen?
Also, for the capital improvements I made but not depreciated because of selling my rental how do I account for that? I did a trial run where I added that amount to the original cost basis of my property but that affected my depreciation for 2018 so it felt like the wrong approach. Instead should I reduce the Sales Price by the amount of capital improvements I made in 2018?
I'm kind of stuck right now because I cannot get Turbo Tax to calculate anywhere near the numbers I am getting on paper.
Thank you!
