I bought an RV park for $250k in 2020 , put in $150k improvements and sold is just over 1 year later for $425k.
Of the $150k I spend roughly $100k was capital improvements (New electrical system/ plumbing/ major renovations) and $50k was regular expenses.
(I'm using TT business for filing a 1065 for my partnership LLC)
I have entered the building portion of the purchase price $150k (Purchase price - land value) as a depreciable rental real estate asset.
My question is do I enter each of these capital expenses as depreciable assets in TT business? or just add them to my basis for the sale? I thought I was supposed to enter them each as an asset but then when I entered the sale of the property in TT it only asked me what I paid for the property and what I sold it for.. It didn't take the $100k of capital improvements that I had entered as a "Rental real estate asset" and was depreciating and add them to the basis of the sale.
Or do I just add the $100k of capital improvements to the what I bought it for question and enter $350k? and not list the capital improvements as a rental property asset?
