Under "Tell Us Abut This Rental Asset", for Cost Base, TurboTax said:" The Cost (or basis) of an asset is generally just the amount you paid for it. However, you can also include amounts spent in acquiring the item, such as freight, installation, sales tax, and legal fees. How to determine the cost of:
Property converted to business use from personal use
If you used the item for personal purposes before you started using it in your business, the cost is the lesser of: The item's fair market value, or Your basis in the asset (how much you've paid for it, including whatever you spent to acquire it) at the time you started using it for business."
Am I understanding the Turbo Tax instruction correctly that I will add the following as cost:
1. Purchase price of the condo
2. Fees that I incurred to purchase the condo such as transfer tax, title fee and other document/legal fees
Can I add improvement done to the property before I started renting to the cost here?
