you can't expense it since remodeling would be a capital asset. (added to tax basis)
you would enter it like the property itself as a separate asset
I would use the date the property was sold as the date placed in service and allocate a portion of the sales price equal to the cost - thus no gain loss but this reduces the gain on the original property
the remainder of the sales price and closing costs would be allocated to the property on that asset worksheet
the other option would be to treat as a sales expense but an usually large sales expense might flag your return for audit
