This is a fantastic write up and hope it will answer mosts, if not all my questions but, I want to throw a wrench into this to better understand my situation. I did a 1031 exchange so I don't click sold in the initial screen where you say click sold. Any other changes to this write-up that I need to do since I am deferring my gain?
WE SOLD OUR VACATION/RENTAL HALF DUPLEX IN FLORIDA SEPT. 2019. I REPORTED IT THIS YEAR 2021. FEDERAL WENT WELL. BUT CALIFORNIA SIDE OF TURBO TELLS ME TO CHANGE THE SALE DATE OF SEPT. 2019. WHAT DO I DO NOW?
These instructions are very detailed and I really appreciate them. But I can't help but notice it references Turbo Tax 2014 and the HUD-1 Settlement statement. Do these steps still apply with the 2021 TT? I'm using the desktop Turbo Tax 2021 Premier version. I sold my rental in 2021 and we didn't receive a HUD-1. I called the title company and she said HUD-1 is now obsolete and replaced with the ALTA Settlement statement and the Closing Disclosure statements. I do have both of these statements. I compared it to the HUD-1 I received in 2014 when I purchased the rental property and it's very condensed with different line item numbers.
But more importantly I just want to make sure these directions still apply with the 2021 software. I've been using TT for years and always thought it was very simple to use, but I have to say, trying to input the sale of this property has me very frustrated.
This is fantastic explanation. How can I show upgrades like painting, flooring, electric work done at the time of selling the property? As per my understanding all these will get added to cost basis. I have hard time figuring out on how to add this to cost.
In the year of sale, improvements do NOT get depreciated at all ... the program will not even allow it. The cost is added to the Sch E as repairs even if the amount is large.
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