I have a residential rental property (reported on Schedule E) that I improved and sold in the SAME year (2024).
Question: Can I add the cost of improvements to the property's cost basis instead of depreciating them?
When I tried increasing the cost basis in TurboTax, it is showing a NEW calculated depreciation amount for this year. I want to ensure I am handling this correctly to minimize depreciation recapture and optimize my tax outcome.
What is the best approach in TurboTax to properly reflect this? Should I be concerned about the new depreciation amount it is calculating?
