I can and will provide actual values. I can even combine my two assets into one asset but that won't change the fact that my improvement costs are not included in the total cost basis shown on form 4797. I can manually compute the proper gain on the sale of my property but I still can't figure how to force Turbotax to compute it properly.
In 2008 I converted my home to rental with a structure cost of $176,000 and Land cost of $69,000.
In August 2020 I made improvements at a cost of $20,000 (asset named Renovations)
In September 2020 I replaced the roof at a cost of $7,900 (asset named New Roof)
Combining these two assets into one marginally simplifies things but neither creates nor solves the issue at hand.
In January 2020 I sold the property for $315,000 with Sales expenses of $19,000.
Sales price has been allocated as follows; $225,393 (structure) + $69,001 (land) +$7805 (new roof) + $12,801 (renovations) = $315,000.
Depreciation for each item is; $76,800 (structure) + $0 (land) + $96 (roof) + $7200 (renovations) = $84,096.
My adjusted basis for the structure = $176,000 (original basis) + $19,000 (sales expenses) + $20,000 (renovations) + $7,900 (new roof) - $76,800 (depreciation) = $146,100
Manually computed gains are as follows;
Structure: $225,393 - $146,100 = $79,293
Land: $69,001 - $69,000 (basis) = $1
Roof: $7805 - ($7,900 - $96)adj basis = $1
Renovations $12,801 - ($20,000 - $7,200)adj basis = $1
So I can manually compute my gains correctly but Turbotax apparently is not! Turbotax is not adjusting the basis on the structure for the costs of the roof and renovations. It is only considering the original basis and the sales expenses. I have read many posts, and been told in this one as well, to do it manually but how do I get this adjusted basis in Turbotax? Somehow it has to get to Line 21 on form 4797. The answer to this specific question seems to be very elusive. Does anyone know that specific answer?
