I am using TT Premier on Desktop version (Windows computer). I am having an issue with how to report the sale of rental property in 2021. Here are the details:
- Bought the property as my home in 2006 for $410,450
- Lived in the property myself (own residence) through 2014
- Put it for rent in 2014 (I can estimate the fair market value at that time based on county tax as $332,000)
- Sold in 2021 for $390,000 (minus closing costs of about $22,000)
I think I need to put the cost basis as the fair market value in 2014, the year it was put in service as a rental, and not the original purchase price in 2006 when I bought it for myself. Correct?
But it only let's me put the original purchase price. How do I correct this? I understand I need to put the original purchase date, and the original purchase price, but don't they also need to know the cost basis (fair market value) when it was placed in service as a rental in 2014?
Thanks!
