2018 sold residential property that I had rented for past eight years. When asked if the asset was used for business only during ownership, I responded no since it was my personal residence for 16 years prior to conversion. The following screen tells me it cannot compute sales info. I am working with turbo tax home and business (2018)
Additionally, when doing recapture depreciation, I understand I have to enter individual sales amount for all capital improvements while a rental. Do I also have to break up sales price into Imprv and Land values? How is a reasonably intelligent person going to put a price on a "remodeled bathroom" or a new roof" as if it is normal to buy a used roof or bathroom. When dividing selling price of a asset like an air conditioner that has 4+ yrs of depreciation (original cost as basis), resulting in over depreciation unless you tack (proportionally) 30% to cover cost of land and fees?
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1) Offset for Main Home only goes back 5 years, so for tax purposes, you had 100% rental use.
2) Land is Always a separate category, not combined with or offsetting building/fixtures for depreciated value.
3) Basic rule for residential houses: If it is attached to the structure, has same depreciation (27.5 years). Not realistic, but the rule.
4) For additional IRS guidance, see https://www.irs.gov/publications/p527 .
Thank you for the info, it clarified a lot. One final question, is the tax program Home and Business is capable of doing the necessary computations I need i.e. recapture, etc. Again, thank you for your time and information.
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