If using the EasyGuide, you would enter 1993 as date of purchase and the purchase price. Then add half step-up as an increase and a description as "Half step-up (just half the increased value of the 1993 purchase price compared to the 2006 value). If you are eligible for the exclusion of capital gain, it won't make a difference. This is information for the TurboTax worksheets, "Description of increase" is not on a form transmitted to the IRS. If you are eligible for the exclusion of gain, the value of the improvements are irrelevant.
The worksheet could be helpful just to have with your tax file.
So enter the 1993 purchase price, half the increase in value as of 2006, and any major improvements, such as a pool or room addition. Selling costs including commissions.
The new basis and selling costs are subtracted from your selling price.
If the capital gains are less than 250,000, the gain is not taxed.
Thank you for using TurboTax.
