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.

Calculating cost basis on rental AND ADU

Ok here's the situation: 

 

I have a property that has a main house and a carriage house (ADU). I have rented the carriage house since 2018, and I believe that I calculated the cost basis properly to capture depreciation in 2018.  I used to live in the main house.

 

Now I rent BOTH houses.

 

Do I now calculate cost basis separately?

Is the cost basis for the main house my purchase price minus land? 

How do I enter this into turbo tax?

 

Thanks for any help in advance. 

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
ColeenD3
Expert Alumni

Calculating cost basis on rental AND ADU

Example: If you had a property that had a cost of $500,000 and you have allocated $150,000 to one portion of the property over the years, that leaves you with $350,000.

 

Basis is the entire amount (which for you is divided by two structures). You must separate land from each structure since you can't depreciate the land.

Unlock tailored help options in your account.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question