PatriciaV
Expert Alumni

Investors & landlords

It depends on the status of your Rental Property while you made repairs before it was sold.

If the property was available to be rented while you made repairs (even if you had listed the property for sale), you would report repair cost under Rental Expenses.

Upgrades that restore the property (including new wiring, A/C, adding a garage, etc.) are considered Improvements that are Rental Assets that would normally be depreciated. Because you placed these improvements into service the same year you sold the property, you will receive no depreciation expense.

However, if the property was not available to be rented (or you had no plans to rent it again), any costs for repairs or improvements that you incurred before you listed the property increase the basis of the property and should be entered as a separate Rental Asset (improvements). Again, no depreciation expense in the year of the sale.

Any repairs needed in order to close the sale may be included in Selling Expenses (see screenshot below - click to enlarge).

The easiest way to find any section of TurboTax is to use the Search box at the top right side of the TurboTax header. Click on the magnifying glass, type in the topic you need, hit Enter, and click the "jump to" link to go directly to beginning of that topic.

Additional Information:

[revised 4/5/17 to add screenshot]

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