You can include the closing costs in the box where it says Asset Sales Expenses on the Sales Information screen where you enter the sales price of the rental property.
Go through these steps to find it:
- Click
on Federal > Wages & Income
- In the Rentals,
Royalties, and Farm section
click on the Start/Revisit box next to Rental Properties and
Royalties (Sch E).
- On the Income from
Rentals or Royalty Property You Own screen, click Yes.
- If you have already started
adding information about your rental, you will come to the Rental and
Royalty Summary screen.
Click on the Edit box next to the property.
- On the screen, Review Your
[property] Rental Summary click the Start/Update box next to Property Profile
- Continue through the screens, on the screen Do Any of These Situations Apply to This Property check the box next to I sold or disposed of this property in 2017
- Continue through screens until back to Review Your [property] Rental Summary
- This time click on the Start/Update box next to Sale of
Property/Depreciation.
- If you have already entered assets, you will see
the screen, Do you want to go directly to your asset summary?
mark the Yes radio
button and click Continue.
- On Your
Property Assets,
click Edit next to the property. [If you haven't entered any assets yet, just follow the screens to
add the house as an asset. Once you are finished you will be brought
back to the the Asset Summary to enter the improvements as assets.]
- When you come to the
screen, Tell Us More About This Rental Asset, mark the box that the
item was sold and enter the date of the sale.
- You will eventually come to a
screen to enter the sales information, you will also enter Asset Sales Expenses here, those are your selling costs.
- Continue
through the interview, entering the requested information.
