No, don't add the January capital improvements to your cost basis. Enter each of the capital improvements as an asset. For the Date purchased or acquired, enter the sale date (February 2021).
Please see my previous post on how to enter the sale of a rental. Click here.
Some items to remember as you enter your rental sale:
- You have to indicate you sold the rental property in both the Property Profile section and the Assets/Depreciation section of the program. You will be prompted to enter sales information during the interview in the Assets/Depreciation section of TurboTax.
- Closing costs are considered expense of sale and this reduces the gain or increases a loss on the sale. TurboTax will ask you about the expense of sale. Examples are commissions, transfer tax, recording fees, etc.
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