In my case, I acquired/put into service both the HVAC and Windows in Feb 2022 and sold them in Jun 2022. So, you confirmation about not needing to define addition asset entries is helpful.
I came across another TurboTax topic thread (Residential Rental Property Improvement and Sale in the Same Year) that discussed handling home improvement expenses made in the same year that the rental property was sold. It was stated one could add the improvement costs to the house/structure Sales Expense.
Using your example, I applied this methodology using only the Structure and Land assets. I used the 70/30 ratio to calculate the respective Sales Price and Sales Expenses before rolling in the improvement costs to the structure Sales Expenses.
Using this approach, I arrived at the same total gain of $66,000 as in your example.
Note: There was a calculation typo in your example for the Structure where the gain is $43,000 not $63,000 and the total would then be $66,000
Asset Cost Sales Price Sales Expenses Gain
Structure $70000 $140,000 $31,000 $39,000
Land $30000 $60,000 $3000 $27,000
TOTALS $100000 $200,000 $34,000 $66,000
I entered this sample information into Turbo tax and reviewed the resulting Form 4797.
Line 21. "Cost or other plus expense of sale" number for the structure was its original cost + sales expenses .
This seems like a logical approach to handling my home improvement expense treatment.
