Purchased new rental property. In TurboTax "Purchase Price" do I enter purchase price or the cost basis? I had to replace the roof and add insulation before renting.

When entering the purchase price, TurboTax doesn't give additional information about cost basis.

Do I enter the price of the home?

The price of the home plus closing costs?

The price plus closing plus renovation/repairs (i.e. cost basis)?

I had almost $16k of work to complete to make it livable...

Thank you! This forum has been a GREAT help.

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1 Best answer

New Member

Jun 3, 2019 1:08:30 PM

Your purchase price should include closing costs. Your improvements (roof/insulation/etc.) should be entered as such and depreciated at the residential rental depreciation rate (27.5yrs).

New Member

Jun 3, 2019 1:08:30 PM

Your purchase price should include closing costs. Your improvements (roof/insulation/etc.) should be entered as such and depreciated at the residential rental depreciation rate (27.5yrs).

New Member

Jun 3, 2019 1:08:31 PM

I just saw that there is a page to enter legal fees, title insurance, etc. The page is titled "Enter Escrow Fees" which is probably incorrect, since things like legal fees and title insurance are NOT escrowed.

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Purchased new rental property. In TurboTax "Purchase Price" do I enter purchase price or the cost basis? I had to replace the roof and add insulation before renting.