turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

khwilliamson
Returning Member

Paid delayed bill for casualty loss in year after sale of rental residential property

I sold a rental property in late 2021.  After the tenants had moved out, and a buyer was interested, there was a sewer backup which cost about $15K to put back to the condition before the casualty.  There were multiple contractors involved.  One sent their bill to the wrong address, and in all the commotion I didn't notice I hadn't paid it.  It was for $7K.  Just before sending it to collections, they made more of an outreach effort which found me, and I paid it then, May of 2022.  I added the bills I did pay in 2021 to the cost of selling.  I believe the basis was reduced by the cost to restore it, and there was no time to depreciate it significantly differently from the rest of the asset, but I don't really understand this stuff.

 

I think I should just file an amended return before Tomorrow's 3 year deadline for 2021 with that $7K added to the cost of selling.  And a distant relative who is a CPA told me to do that in a 30 second aside at a family reunion.  But I've been unsure, and have procrastinated to the last moment, and am now asking for any advice

x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Reply

Paid delayed bill for casualty loss in year after sale of rental residential property

 
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies