1) Since you had rental income and expenses. you should have recorded the sale in the Rental Section.
On the Sales of Business or Rental Property Page
2) You should have marked that it was sold, when asked.
I did not check that I sold or disposed of the property during 2020.
3) Property tax and mortgage interest are entered on Schedule E, not added to basis. Minor repairs and such are not added to basis, nor are they deductible. Major improvements are added to basis. What other fees?
I totaled up the costs related to preparing the property to sell (including expenses such as property tax and mortgage interest between 10/19/20-11/30/20) as well as sales expenses like real estate commissions and other fees and I added that to our initial purchase price (not the FMV at the time we converted it to a rental)
The following items are some of the settlement fees or closing costs you can include in the basis of your property.
• Abstract fees (abstract of title fees).
• Charges for installing utility services.
• Legal fees (including title search and preparation of the sales contract and deed).
• Recording fees.
• Surveys.
• Transfer taxes. Intangible taxes.
• Owner's title insurance.
• Any amounts the seller owes that you agree to pay, such as back taxes or interest, recording or mortgage fees, charges for improvements or repairs, and sales commissions.
4) If you are referring to the rental fees and costs, they belong on Schedule E.
I don't see where to list what these expenses are though- is there someplace that I should be itemizing all of these expenses and costs?
5) Entering the sale in the rental section will do this for you.
In the field for Depreciation Taken on this Property, I totaled the prior years' depreciation along with the amount calculated in the rental section for 2020 that will be depreciated in 2020 up until the date the property was vacated and entered it.
