Where do I enter improvements to a rental property that was sold?

[buffysings]

I purchased a townhome in 2014 which was rented till May 2019 and sold in June 2019.  Between May and June, I did several repairs, replaced ceiling fans and window treatments as well as other items.  I am still confused on where I should be entering these costs.  Should each be considered an asset and then identified as "disposed" of when I sold the unit?  I am hoping that I am inputting my figures in error as my capital gains tax is through the roof.  

[Anonymous]

to shorten the possible answers, what year did you start renting?   if prior to 2019, have you reported the rental on schedule E and taken depreciation on the cost of the townhouse? 

[buffysings]

I started renting the unit in April 2014 and have been taking depreciation every year.

[Anonymous]

the repair and maintenance costs would go on schedule E.  improvements would be added as an asset. 

a)  your gain   selling price (1099 S which should match closing statement0

b) selling expenses - most those on the closing statement

c) cost of the townhouse, don't forget to put in what was allocated to land if it isn't there + improvements 

d) depreciation 

net proceeds = a less b

net basis = c less d

net gain = net proceeds less net basi

net gain less depreciation = long term capital gain

depreciation is recaptured as 1250 gain

even a large capital gain may not be hit hard with taxes.  a portion of long term capital gain is taxed at 0%.  

[buffysings]

 Thank you so much!

[Critter]

Improvements made in the year of sale are NOT entered as assets ... they are added as repairs on the Sch E.