QUESTION - do all expenses and the get ready to sell expenses get somehow calculated behind the scenes to adjust the cost basis of the property to reduce the capital gain? by expenses I mean, new HVAC and water heater installed a couple of years ago, new dishwasher, washer/dryer and for get ready painting and small repairs.
Here is the information I have from turbotax - Thank you!
506,025.I bought a rental property for 464K 20 yrs ago and sold it last yr for 585K I show owing about 55K in federal taxes and 14K in state taxes
calculated as follows:
W-2Wages and tipsImportant:$123,322
1099-INTInterest incomeImportant:$111
1099-B Capital gains and lossesImportant:$257,519
Sch ERent, royalties,and passthroughsImportant:-$6,924
Belows is what shows as my cost:
| Cost: |
| The amount you paid for it, plus freight, installation, sales tax, legal fees. Learn More |
| | 464,000 |
| Cost of Land: | |
| If the cost of this property includes the land value, enter the land value here Learn More | 58000 |
| | |
| Date purchased or acquired: (mm/dd/yyyy) | 5/10/2010 |
Depreciation is shown as 157K
Sale information below and shows as $25,031 plus $3,948 is for the commission fee for the realtors. Other expenses to get it ready I included as expenses.
Sales Information
| Enter the following information about the sale of this asset. You must divide, or allocate the sales price and expenses between the land and the asset (improvement) based on their fair market values. |
| |
| Asset Sales Price (Business Portion Only) $506,025. | |
| Asset Sales Expenses (Business Portion Only $25,301. | |
| Land Sales Price (Business Portion Only) $78,975. | |
| Land Sales Expenses (Business Portion Only) $3,948. | |
