If you haven't already, enter the house and all of your major improvements as individual assets in TurboTax. Then allocate a portion of the sales price to each of the assets (house, windows, siding, roof).
To do this please follow these steps:
- Click on Federal > Wages & Income
- In the Rentals, Royalties, and Farm section click on the Start/Revisit box next to Rental Properties and Royalties (Sch E).
- On the Income from Rentals or Royalty Property You Own screen, click Yes.
- If you have already started adding information about your rental, you will come to the Rental and Royalty Summary screen. Click on the Edit box next to the property.
- On the screen, Here's [property]'s rental property info, click the Review box next to Assets.
- If you have already entered assets, you will see the screen, Do you want to go directly to your asset summary? mark the Yes radio button and click Continue.
- On Your Property Assets, click Edit next to the property. [If you haven't entered any assets yet, just follow the screens to add the house as an asset. Once you are finished you will be brought back to the the Asset Summary to enter the improvements as assets.]
- When you come to the screen, Tell Us More About This Rental Asset, mark the box that the item was sold and enter the date of the sale.
- You will eventually come to a screen to enter the sales information.
- Continue through the interview, entering the requested information.
- You will be brought back to Your Property Assets. Follow the same procedure with the other assets related to this property.
