I purchased a home in 2006 for $245,000. Basis of house = $176,000 and Land = $69,000. Converted to a rental property in 2008 at same FMV. This is the cost basis I entered into Turbo tax in 2008. I've added improvements over the years that have been captured and depreciated in Turbo as well. I've read a lot of posts and IRS publications but still don't fully understand how to adjust the cost basis for closing costs that I paid in 2006, (mortgage points, transfer tax, survey, etc...), when I sell my property in January 2022. I suspect I was supposed to include these costs in the original basis of the home but I did not. So the questions that run through my mind include:
Is the benefit of increasing my cost basis lost?
Do I, and can I, amend my 2008 return?
Can I simply add these costs to my basis when I file in 2022?
Also, does Turbo tax provide a field for adjusting cost basis for items like this as well as for selling expenses and the like or is this done on scratch paper? Thank you in advance for your responses.
