Sold Rental property

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I sold a rental property in 2024, owned for many years. Just prior to selling the property I had to bring the property up to sellable condition to get the best return on my sale. Where do I record the cost of improvements, new counter tops, new appliances, interior painting, new flooring/carpeting, new windows. The cost of these items is significant and really would like to reduce the capital gain of the sale by subtracting these items. Are these costs of sale (items completed only for sale) or assets to be depreciated (can I depreciate the entire cost of each item)?

MarilynGAnswer

Alumni - Intuit

Expert Reviewed

If you made improvements to your rental property after you stopped renting it, but prior to selling it, you can add those costs to your Cost Basis (remaining undepreciated balance) when you sell the home, or include them as Sales Expenses.

No depreciation involved here.

Here's more info on How Capital Gains are Taxed.

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MarilynGAnswer

Alumni - Intuit

Expert Reviewed

No depreciation involved here.

Here's more info on How Capital Gains are Taxed.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

josephpirozzi

Level 2

Need to Find Form 1099-S

josephpirozzi

Level 2

Sold Rental Property need to find 1099-S

user17708643219

Level 8

1099-S is normally given to you along with the closing documents upon selling the home. It may also be mailed to you during the beginning of the year, like any other 1099 or W-2. You can also download your IRS Wage and Income Transcript via your IRS account and it should have the 1099-S information there.

If can't retrieve your Form 1099-S, just use the Sales Price of the property that is listed in the closing statement documents.

Here's a link to the IRS website were you can login or make your IRS account so you can download your wage and income transcript for the year: