foundation repairs. The cost was aprox $7000. My question is where to I add this $7000?
In the Assets/Depreciation section.
I assume that because it was no longer a rental at the time of sale, it gets added to the cost basis, but I can't find where in turbotax. I did not convert it to personal use because I didn't move into it.
Your assumption isn't quite correct. The property remains classified as residential rental real estate until you convert it to personal use. Since you never converted it, it was still a rental property even though it was not rented in 2021. SEE WARNING BELOW!
I assume I need to add the improvements somewhere in Rental Properties and Royalties because I need to recapture the depreciation.
You will add it as an asset in the assets/depreciation section. Now I would expect that section to now be called "Sale of Assets/Depreciation" if you indicated at the start that you sold the property. When you add this asset, give it an in service date that is the closing date of your sale. That way, no depreciation will be taken since "technically" it was never placed in service. But if any depreciation is taken, it will be negligible on $7000.
Does it get added to selling costs?
Definitely not.
Remodeling after he moved came to about $9000 including a new roof. The property was put on the market in Nov 2021 and sold in Jan 2022. Again, I'm not sure where to put the $9000 repairs or how to add them to the cost basis or if I should even do that now seeing that it was sold in 2022. Do I need to convert both of them to personal use because they were not being rented when sold?
Absolutely nothing what-so-ever concerning the sale of this property will be reported on your 2021 tax return. What I would suggest you do, is convert this property to personal use with a conversion date of 1 day after the last renter moved out, This will stop depreciation. Any costs, such as routine maintenance costs and repairs incurred after that date are not deductible as a rental expense. (Some expenses incurred after the conversion date "might" add to your cost basis, depending on what those costs are.)
Now, for this property, once you have completed the tax return you will need to save it in PDF format and print some forms you will need for reporting this sale on your 2022 tax return next year. When you save it in PDF format, save EVERYTHING. Not just the forms required for filing, and not just the forms "for your records". Save everything.
In that saved PDF you will find two form 4562's that print in landscape format, for each rental property reported on SCH E. So make sure you get the right two. One is titled "Depreciation and Amortization Report" and the other is "Alternative Minimum Tax Depreciation". You will also need to print the IRS Form 8582-Passive Activity Loss Limitations. If you don't have any loss carry overs on your 2021 return, then that form will not be present. You will "need" those printouts when you report the sale of the 2nd rental on your 2022 tax return next year.
Next year when you do your 2022 tax return, you will report the sale of this property in the section for "Sale of Business Property".
WARNING: Under no circumstances and with no exceptions should you select the checkbox for "I did not rent or attempt to rent this property in 2021." If you select that option, then the SCH E for that property and all supporting documents including the depreciation history, will be permanently deleted.
