In 2015 I bought a rental house for 215,000. I sold the house this year for 315,000. Over the course of 6 years, I made several improvements: Significant expenses like a Roof, New Driveway, New French Doors, Wood Floors, other less expensive items. My questions:
1). TT requires you to split the sale into asset and land. The land appraisal alone for 2021 shows $160,000! Back in 2015 it was much lower, $88,000. How do I reconcile that with the overall sales price? Should I assign something other than $160,000 to the land portion? Assigning $155,000 ($315k - $160K) to my asset doesn't seem right.
2). How would you classify a totally new driveway when added as an improvement? "J5 Qualified improvement" or something else? How would you classify a new French door that replaced an old sliding door? What happens if I classified it incorrectly when I initially added it?
3). Going back to my sale price of $315,000 ... how do I dispose of the improvement items like I mentioned above? TT asks about selling each of my improvements. I don't know what my roof, driveway, French doors, etc represent in the $315,000 figure. I know what I originally paid. Does the total of these improvements affect my original purchase entry of $215,000? I'm doing something wrong because I'm getting error messages during the smart review. What step by step process should I use for each improvement so I can satisfactorily dispose of these improvements in the sale/depreciation section?
