Rental Property - where and how do I enter expenses incurred post rental to refurbish before sale

[esarnc]

I purchased a  rental property in February 2018 which I sold in June 2020.

I have been using TT to track the rental income for 2018 and 2019 tax returns.

In 2020 the house was rented through March 2020 and I spent $$ to refurbish (paint, roof, flooring and new appliances) before selling in June 2020.

For my 2020 return, where do I enter $$ spent on refurbishing so that it becomes part of the basis. Since the work was done post rental, I do not think I can enter this as part of rental expense.

I am planning to add the refurbish expenses and the closing cost expense and enter the total in the "Asset Sales Expenses (Business Portion Only)" box. Is this OK?

[AmyC · Accepted solution]

Yes!  Those expenses are ultimately added to the basis along with the sales expenses.