Thank you! With your advice, I was able to correctly put the improvement as long term capital gain. I just worded the improvement as "Improvements Completed 6/6/2023 Prior To Sale" so hopefully IRS understands that I did not actually do improvements in 2022. Do not want to trigger an audit because IRS thinks any improvements completed in 2022 should have been depreciated. Wish Turbotax would allow letters of explanation in their program.
