@Jewelwing wrote:
First of all, I used the taxable value in the year of conversion to rental (2016) as the cost basis in TurboTax. Why? I cannot recall. Let me put some numbers to this to make it real. The taxable value was $110,806 of which land value was $19,800.
Because I made an error in TT by misreading the instructions regarding personal use days, I didn't enter zero in that field as it should have been. Therefore, depreciation was zero in 2016 when it should have been $1,793 (1.97%). In each of the subsequent years, 2017-2022, depreciation was $3,337.
I know for sure we invested $200,000 at least in the construction
Do you have the amount you paid for the land? That should be fairly easy to come up with.
Come up with a GOOD ESTIMATE of your actual cost for the building. I realize you don't have receipts, but you probably can come up with with a good estimate.
What was the Fair Market Value of the property when it was converted to a rental? Was it more, or was it less than the amount of your actual "cost"? I realize you have mentioned some various numbers, but until you tell use a somewhat 'solid' number, we can't just guess at things. You could even hire an appraiser for a retroactive appraisal.
What was the selling price (after any selling expenses)?
What date was it "placed in service" as a rental? What date was it sold?
Until you can come up with ALL of those numbers, it is impossible to give you a 'good' answer.
