I purchased a rental home in 2014 and rented it out. I remodeled the home in 2015 and need to adjust the cost basis to reflect the $30,000 in remodeling expense. where do I add that cost. on the form it show $30,000 but not the prior year cost basis
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How you enter the remodeling costs will depend on what types of improvements were made.
Any improvements with a useful life of more than one year (e.g. deck, appliances, insulated windows, carpeting, cabinets, bathtubs, tile-work, exterior paint) are entered as depreciable assets in the Your Property Assets interview screen found in the Sale of Property/Depreciation section of Federal Taxes tab > Wages and Income category > Rental Properties and Royalties subcategory > Your Rental Summary.
Any costs with a useful life of less than one year (e.g. interior painting, minor repairs) are entered in the Expenses section of Federal Taxes tab > Wages and Income category > Rental Properties and Royalties subcategory > Your Rental Summary.
How you enter the remodeling costs will depend on what types of improvements were made.
Any improvements with a useful life of more than one year (e.g. deck, appliances, insulated windows, carpeting, cabinets, bathtubs, tile-work, exterior paint) are entered as depreciable assets in the Your Property Assets interview screen found in the Sale of Property/Depreciation section of Federal Taxes tab > Wages and Income category > Rental Properties and Royalties subcategory > Your Rental Summary.
Any costs with a useful life of less than one year (e.g. interior painting, minor repairs) are entered in the Expenses section of Federal Taxes tab > Wages and Income category > Rental Properties and Royalties subcategory > Your Rental Summary.
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