They’re not categories in TurboTax. Improvements are added to your cost basis. Say the cost of your home was $100,000. You add a new roof for $20,000. Your cost basis is now $120, 000. You sell it for $150,000. Your gain is $30,000.
if you did not add a roof, you pay $100,000 and sell it for $150,000. $That’s a $50,000 gain so adding your improvements to your cost of house gives your your adjusted cost basis which is higher and provides for a tax break.
The only time it matters is when you sell it. That’s when you need to figure your adjusted basis.
it’s not something that is entered into TurboTax
Repairs are deducted during the year from a rental unit as an expense. Selling expenses are added to the cost of selling the property upon sale if the unit.
