DanielV01, I'm a little confused by your response....
You said, "...whether or not you had discontinued your rental activity (and, thus, depreciation on the home) before or after you made the improvements. If you stopped your depreciation (rental activity) before making the improvements, then enter the information in the Sale of Asset section." This makes sense; rental activity stops, improvements go towards the basis and selling of the property....
Then you replied further and this is what I don't fully understand, "If, instead, you made the improvements before the sale, you will need to report the assets on the Rental Activities Section, Depreciation first." Did you mean improvements before ending your rental activity?
Can you clarify? I see 3 different scenarios: improvements done before rental activity ceases (must be depreciated and recaptured upon sale); improvements done after rental activity ceases but prior to sale of the house (adjusts basis for capital gains purposes); and, in my case, after rental activity ceases, before the sale of the house, but the end of the tax year intervenes before the sale.... Please clarify as I'm a bit confused.
And, if you'd care to comment further, here is my situation: What if the improvements were done 1) after the last rental activity 2) improvements were done Nov./Dec. of 2018, when house was empty 3) end of 2018 tax year occurs 4) house sold in March of 2019 with no further rental activity? (I'm still doing my 2018 taxes.) Do I put all improvements into their perspective Depreciation Schedules (27.5 for siding, 5 for carpet ((not wall-to-wall)), 27.5 for luxury floating vinyl) for tax year 2018 and worry about the adjusted basis in 2019 when I resolve the sale?
