Hi,
I sold my rental property on 8/17/2020 but from 2013 to 2015 it was my personal property and I made improvements to the home. However, when I first started renting the house in mid-2015 I used the original purchase price (370K) as the cost basis. During 2013 to mid-2015 (before renting) I did approximately $35K worth of improvements but again these were not added onto to the cost basis of the rental - I used the purchase price.
Fast forward to 8/17/2020 and I sell the rental property for $560K. The tenants moved out in mid-May and I spent approximately $30K or so to fix up the home to ready it for sale. How do I add the improvements I made prior to renting the home and the improvements I made pre-sale to increase my cost basis and reduce the amount of tax that is due? I cannot find any place to simple add these values without Turbotax wanting to take depreciation deductions - which it should not since it was never part of the cost basis. I believe I should be able to increase the cost basis with these improvements and thus reduce my tax obligation.
Thank you.
