there is no way to enter adjusted basis improvements on a rental home sale that are not being depreciated.
As a work-around,what you can do is this.
First, show the property as converted to personal use on the closing date of the sale. Just work through each asset and select "I stopped using this asset in 2021" and remember to select YES on the special handling required screen for each asset. (If you select NO, you are force to enter sales information.) As you work through each asset, add up the depreciation amounts (prior years and current year) for all the assets to get the total amount of depreciation taken.
Next, report the sale in the "Sale of Business Property" section. Here you only enter totals of everything. So the total of your cost basis will include your non-depreciated property improvements that were done after the last tenant moved out, and before you sold the property. When asked for depreciation, you'll enter the total taken on all assets, and so forth.
Remember, your closing sale date in "Sale of Business Property" needs to match the date the property was converted to personal use. (You're converting it to personal use on the date of the sale, so as to stop depreciation on that date.)
