I sold my rental property in June 2021. I stopped renting it in February 2021. During March-April I completed a major renovation, including floor replacement, new kitchen cabinets, tiles, appliances, new bathtub, bathroom tiles, painting, etc. I paid a total of $16,000 for materials and $10,000 for labor.
How can I enter these capital improvements in TurboTax to add to my cost basis and avoid depreciation?
Is it appropriate if I add a lump sum of $26,000 as an asset with a date of sale as my closing date?
Thanks!
