What does Turbotax expect to be the value in the "Cost" box in the Residential rental real estate, Review Information screen on TT 2024? It is directly above the "Land" box. It is in the Review Information screen, as it pulls from the prior year's return.
Does it want the TOTAL cost (including Land value and Building cost, etc)? or does it want just the NET cost (after subtracting out the Land cost)?
With a $40K land value,, for example, upon the sale of the rental house, the tax affect is like $10K.
I am surprised that TT doesn't have more guidance on that page.
Subsequent pages regarding the Sales price, there is a drop down description: "For a sale involving land, the sales price and expenses must be divided, or allocated, between the amount received and paid for the land and the amount received and paid for the improvement portion of the property."
For the Cost, will the TT program do the subtraction ? (I don't want it to subtract the Land cost twice and cause higher taxes.
If anyone can assist, please help.
