@earth777 Having gone through your post and keeping in mind the KISS ( Keep It Simple Stupid ) process:
(a) On schedule-E for 2024 account for any repairs that were done during the tax year + applicable depreciation for the year.
(b) All improvements whether expressly under the heading/purpose of sale or not are just that " improvements . These are all expensed as Selling expenses ( the logic being that improvements / repairs just prior to sale are all " sales expenses" -- difficult to distinguish those that increase the value ( to be depreciated ) and those for cosmetic reasons -- at least from a buyer perspective. So I will put all improvements and repairs (after the renter's departure ) under the general sales expenses.
(c) Under sales expenses will also be items like title search/insurances , sales commission, transfer tax etc. etc.
(d) You gain is then Sales Price LESS Sales Expenses LESS adjusted basis ( which is Acquistion Cost + Cost of all improvements LESS accumulated allowable depreciation ) LESS any suspended losses. This gain/loss will flow from 4797 , Schedule-D to form 1040
(e) Your Schedule- E will reconcile rental income, expenses ( repairs, admin fees, taxes, mortgage interest etc. etc. ) and the net will flow to your form 1040 via schedule 1.
TurboTax will do all the work and fill the right forms for you.
Does this make sense ?
Is there more I can do for you ?
