Yes, the basis of the condo would be the orginal cost plus improvements. However, you need to deduct depreciation that you could have taken from the basis when you report the sale. You can make an adjustment in the current tax year to claim back depreciation from prior years if you failed to do so. Your other option is to amend prior year returns, but you can only go back three years if you choose that option.
To deduct unclaimed back depreciation, you need to adopt a change in accounting method in the current year. You will need to use the desktop version of TurboTax to do this. This article will explain more on the procedure: Claiming back depreciation
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
