Thank you @DianeW777 -
That brings me to the second half of the question.
I've now also sold House B, the rental that was acquired through the 1031 exchange. In Turbotax, it asked if I had sold the rental property and I replied Yes. Turbotax filled in the Date Sold on the Disposition Report of the house, but didn't do anything with the land (as a separate asset not subject to depreciation) or with any of the capital improvements either from House B or the capital improvements carried over from House A when it was sold. My Turbotax questions are:
- If the gross sales price of House B was $200,000 (including house and land), how do I get TT to allocate the sales price between the house and the land for the Disposition Report?
- For every capital improvement listed on Form 4562, how do I tell TT to dispose of all of them since I'm assuming I can't continue to claim depreciation on property I no longer own?
- For each of those capital improvements, how do I go about determining the Gross Sales Price and the Basis? I know what their initial cost was, so do I just subtract the accumulated depreciation and that's now the basis?
Questions #2 and 3 go together. Can I use Easy Step to have it walk me through the disposition of each asset or do I use some worksheet? I think I kind of know what needs to be done, but I'm not sure how to interact with Turbotax to make it happen.
Many thanks. I hope my explanation makes sense.
