Second home

[manelson]

Hello,

I had a second home, which I owned since 2007.  I rented the home from July 2017 - July 2020, and then sold the home in Nov 2020.  I filled out the areas under rental property, but do I also fill out the sale of a home under less common income?  Can I take a deduction for broker commissions and other fees associated with the sale, such as permanent improvements and repairs?

Thank you,

[DoninGA]

Since it was no longer your personal residence you do not use the Sale of Home in the Less Common Income section.

Sales expenses should have been entered when going through the section for sale of the rental.

Improvements should have been included in the basis of the rental.  Improvements should also have been depreciated in the rental section.  Repairs should have been entered as a rental expense.

[manelson]

Thank you for the info.

I read that I could not make improvements and claim them in the rental section, because the improvements were completed after the rental and just before sale.

[DoninGA]

If the improvements were made after you took the rental out of service, the cost of the improvements should have been included in the basis of the residential property when sold.

[manelson]

Also, forgot to ask about broker commissions and other sale fees…

[manelson · Accepted solution]

I could not resolve the issues with the rental property, sale, and upgrades, so I upgraded to receive live expert tax assistance.  The first and second experts could not figure out how to connect to view my forms.  The third person, Jenny was able to connect, and we resolved the issues.

I had answered most of the questions correctly, but the main issues was, the depreciation was not calculating correctly and I needed to enter data in the Sale of a Business Property.  Issues resolved only after adding the cost of the sale, including improvements, and then correcting the Rental Property expenses.