If they were expenses, such as painting, you would report those expenses before reporting the sale.
Always report the income and expenses first, since depreciation will be calculated for the months before the sale.
If they were improvements, such as a new roof, enter that as a new (separate) asset and allocate part of the sale proceeds to that asset.
Let's say if the building cost 100,000, land 5,000, and the roof was 10,000 and you sold for 300,000 you would allocate part of the sales proceeds to the roof, lets say 10,000 (or whatever the remaining basis is if it had been depreciated) to get it off the books and the remaining 290,000 between the land and building.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
