I am sorry, you can not claim your ordinary expenses for keeping up this property as part of the adjusted cost basis for this property. If the tree removal was necessary for overall safety of structure, then it is an expense and you can not consider it as part of your adjusted basis. You however, can adjust the basis of your property by the closing costs that you incurred.
If the tree removal was part of a landscaping endeavor, then you could use these costs as part of your adjusted basis of your lot. See IRS Publication 551 for more information.
To make the entry in TurboTax, follow these steps while in your Tax Home.
- Select Wages & Income,
- Scroll down to Investment Income,
- Select Stocks, Mutual Funds, Bonds, Other.
- Respond "yes" to Did you sell any investments?
- Answer No to Did you get a 1099-B or brokerage statement?
- You'll be shown a list of various investment sales and you'll select Land,
- You'll be taken to the screen that says Enter Land Sale Information and you'll be able to enter your information.
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