@Dave412 wrote:
On the premier version im to a section that says "sales expenses" after entering the price of the house that was sold. I understand you can put in all the closing costs in this section BUT my question is do you enter major home improvements such as a roof and furnace in this section called "Sales Expenses," or do you enter it later?
Improvements are added to the cost basis. If Turbotax asks for the "purchase price" include the improvements along with the purchase price. (Turbotax should be asking for the cost basis, not the purchase price.). There may be a "guide me" interview where Turbotax will ask about various improvements and calculate the cost basis for you, it comes up in some asset sales but maybe not all of them..
Also note to your original question, if audited the IRS does not have to award any basis adjustment you can't prove. While you may want to estimate the cost of items you no longer have receipts for, you may lose the adjustment if you are audited and can't prove them.
Also, one final point. You only claim an adjustment for improvements that are still part of the property. If you replaced the roof in 1990 and again in 2015, only the 2015 improvement counts, since it is still part of the property and the older improvement has been removed. Same with furnace, carpet, kitchen remodel, etc.
