I have one correction to my previous question.
Re: adding the expense to the basis, there is a line item called "Cost of Property (or Tax Basis) Plus Expenses of Sales". Can you confirm if I should put here (a) the original cost of the property, (b) the cost of the renovation, and (c) expenses of sales such as closing costs?
Can you also let me know which one I should select for this entry:
(a) Sales of business or rental property that you haven't already reported
(b) Sales of real estate, cars, or anything else for which you receive payments over two or more tax years (installment sales)
The first one looks more relevant and the second one is not so clear. Which one should I select?
Thank you!
