Investment Property

[jshaf04x]

We purchased a dwelling in 2022, finished the remodel in 2023. It has not sold yet. I sent  the 1099 MISC to the contractor who was responsible for the remodel. Since it has not sold how can I remove the 1099 MISC amount from expenses in turbo tax so it will reflect a true income. When I put the 1099 MISC into turbo tax it shows me getting a large refund. I would rather the tax for this year not reflect this 1099 MISC amount.

[LeticiaF1]

The cost of the remodel is part of your adjusted basis, which is the original cost of the dwelling plus any improvements you made to the dwelling.  You should not report the 1099-MISC on your tax return this year, instead the cost will need to be added to your cost of the dwelling when you sell it.  For more information see Tax Aspects of Home Ownership: Selling a Home.

To delete the form:

1. Sign in to TurboTax and open your return by selecting Continue or Pick up where you left off.
2. In the left menu, select Tax Tools and then Tools.
3. In the pop-up window Tool Center, choose Delete a form.
4. Select Delete next to the form, schedule, and worksheet in the list and follow the instructions.

If you still need assistance feel free to contact us again.