I have a Renovations asset that I added to my rental property in August 2020 for $19,000. I added a new roof in September 2020 for $8000. I sold my property in January 2021. I have read many posts regarding allocation of sales price to all assets in order for Turbotax to calculate properly and I have followed these recommendations, hence I show a gain of $1 each for the sale of Renovations, New Roof, Land and a gain of about $100,000 on the structure. Form 4797, line 21 shows my total cost basis as $196,000 which is comprised of the structure and sales costs of $176,000 and $20,000 respectively. The $27,000 cost of renovations and roof is not included, hence overstating my gain.
I've tried drilling down to find the source of the $196,000 total cost basis but I can't get further than form 4797, line 21. And of course I can't change that line directly. I have two specific questions.
1. Is there any field in Turbotax questions or directly on a form where I can add costs of improvements to my cost basis. I've seen similar questions asked but don't recall ever seeing a direct answer. I'm assuming it's NO because I have searched and searched but still can't find such a field.
2. Of course my second question is a 2-part question; does anyone know why my renovations and roof costs are not included on form 4797 line 21? How can I resolve this issue?
Help is greatly appreciated! Thank you
