First, I "paid forward" taxes for the new homeowner. Is that a deductible expense? if so, where do I enter them... under taxes or expenses?
I also owned the house before I converted it to a rental. Do I need to change the "date acquired" on the asset entry worksheet to reflect that? When I started using TurboTax, and did the questionnaire, I put the date that i acquired the asset to the date I converted it to a rental.
I also didn't know what to do with the land portion, I don't ever remember the program asking how much the land was worth, so when I original went through the questionnaire, I put the amount of the house. Now I noticed that, on the 4797 it showed a huge ordinary gain because it wasn't computing the land basis. I went back to the Asset Entry Worksheet and changed the "total cost when asset was acquired" and entered the land value under "Total amount of land included in the cost". It seems to be correct now, but did I do this correct or does this need to be changed somewhere else?
