topic Where to enter purchase closing cost as cost basis on sale of a rental converted from primary in Investors & landlords

Where to enter purchase closing cost as cost basis on sale of a rental converted from primary

Lupinefalls — Sun, 04 Apr 2021 04:18:16 GMT

I converted primary home to rental for 2 years and sold in 2020. I'm using Turbotax premier. Where to enter the closing cost paid at purchase? I paid real estate commissions on purchase so it's a material amount to add to the cost basis. I tried to add as a separate asset in the rental disposition section and Turbotax asks in service date treating it as asset or improvement. But purchase closing cost doesn't amortize, does it?

Thanks

Re: Where to enter purchase closing cost as cost basis on sale of a rental converted from primary

ColeenD3 — Sun, 04 Apr 2021 14:39:57 GMT

Do not include a separate asset, simply add it to the basis of the property.

Re: Where to enter purchase closing cost as cost basis on sale of a rental converted from primary

Carl — Sun, 04 Apr 2021 14:47:56 GMT

Your amortized costs are only entered in the assets/depreciation section when you purchase the property. When you sell the property it just gets added to the cost basis of the property, or included in your sales expenses.