Can someone please help me with figures to enter on 2020 return? I am going around and around. I am just doing my 2020 taxes. I sold a rental. I rented it from 1/1 to 2/15/20. I have prorated the expenses (taxes, insurance, HOA, mortgage interest) and applied them against the rental income for the 1.5 months. Please tell me if this pro-ration is correct. The property was held out for sale from 2/16 - 7/23/20 when it sold. I bought the property 10/26/05 for $114,500. It was always 100% rental property. In case you need to know this, there was only a $25 HUD-1 charge on the purchase settlement statement other than taxes, HOA, insurance, and mortgage interest.
Next problem for me is Total Sale Price. It sold for $118,000 on 7/23/20. The only costs at sale that I paid were Commissions $6490, Title Curative Work $150, Title Mail Fee, Recording Fee $25. So, is my Total Sale Price $111,185? Here's where I get confused...did I properly subtract the sales fees here or do they get added to the cost basis??
Cost Basis: I have expenses of $10,641 for fixing up the property (Painting kitchen cabinets, granite countertops, interior & exterior painting, roof repairs). Landscaping (some brickwork & mowing) $360. Insurance $502 (2/16 - 7/23), HOA $310 (2/16-7/23), Utilities $411 (2/16-7/23). Can I add these costs to the original $114,500 to equal the cost basis of $126,724?
Asset Sales Price: Do I use the $118,000 or $111,185? I know from tax statement that land is 11.6% of value.
If $111,185, Land Sales Price is $12,897 and Asset Sales Price is $98,288.
If $118,000 is the Total Sale Price then Land Sale Price is $13,688 and Asset Sale Price is $104,312.
If allowed the total expenses above of $12,224 then Land Sales Expense equals $12,224 x 11.6 = $1418, Asset Sales Expense: $12,224 - $1418 = $10,806. Please help on which total sale price to use and which expenses are allowable.
As an aside, anyone have a guesstimate on interest and fine for not filing July 15, 2020 on roughly $14,000 owed so I can brace myself? I did not file for an extension.
Thank you so much for taking the time to help me so I can get these taxes filed! I appreciate the help.
