The total of all my improvements over 6 years was $33260. My purchase price was $215,000.
So your total cost basis is $248,260
I'm going to use the new roof I put on the house. TT shows the following:
Cost: $7368
Your sales price for that specific asset would be $7369 *OR MORE*.
Subtract $7369 from your $315,000 sales price, and that leaves you $307,631 to allocate across the other assets.
When dealing with the sales expenses, you can apply those only to the main structure and the land if you want. Simpler to do that and just be done with those, in my opinion. Assume $5,000 of sales expenses. Don't know your exact allocation of your initial purchase price to the land. So I'm just picking numbers out of thin air for this example:
STRUCTURE COST BASIS: $180,000 Sales Price $200,000 Sales expenses $3,000
$200,000 sales price minus $3000 sales expenses minus $180,000 cost basis shows a $17,000 gain on the structure
LAND COST BASIS $35,000 sales price $40,000 Sales expenses $2,000
$40,000 sales price minus $2,000 sales expenses minus $35,000 cost basis shows a $3,000 gain on the land.
At this point you have used up and claimed all your sales expenses. So nothing for sales expenses needs to be entered for the remaining assets. Of the 315,000 sales price you've only used $240,000 of it on the structure and land. The remaining $75,000 of the sales price is still left to be used across the remaining assets and you can show $0 sales expenses on the remaining assets, since all your sales expenses were used up on the main structure and land.
