Where do I enter expanses I incurred getting the house ready for sale?
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It depends but you will not be able to expense repair costs to get the property ready for sale. However, any capital improvements made to the property will be added to the basis in the property (to increase the basis).
No - If after you inherited the property, you used the property for personal use, then you will not report the loss.(The IRS does not allow a capital loss on the sale of personal use property. This rule applies to the sale of a inherited property that was a personal use property. The TurboTax system will enter a capital loss of zero for this transaction.)
Yes - If no one used the home for personal use before the sale, enter this as an investment in order to claim a capital loss on your tax return. If you have no other capital gains, you will be able to reduce your ordinary income by up to $3,000 of this capital loss in the current year (and any remaining capital loss not used in the current year will be carried over to future years to be used against capital gains (with up to $3,000 used against ordinary losses) each year until the capital loss is all used.
Click this link for further information about reporting the sale of a capital asset
Alternatively, To enter this transaction in TurboTax Online or Desktop, please follow these steps:
Click IRS answers on Gifts and Inheritance for more information from the IRS on the sale of an inherited property.
It depends but you will not be able to expense repair costs to get the property ready for sale. However, any capital improvements made to the property will be added to the basis in the property (to increase the basis).
No - If after you inherited the property, you used the property for personal use, then you will not report the loss.(The IRS does not allow a capital loss on the sale of personal use property. This rule applies to the sale of a inherited property that was a personal use property. The TurboTax system will enter a capital loss of zero for this transaction.)
Yes - If no one used the home for personal use before the sale, enter this as an investment in order to claim a capital loss on your tax return. If you have no other capital gains, you will be able to reduce your ordinary income by up to $3,000 of this capital loss in the current year (and any remaining capital loss not used in the current year will be carried over to future years to be used against capital gains (with up to $3,000 used against ordinary losses) each year until the capital loss is all used.
Click this link for further information about reporting the sale of a capital asset
Alternatively, To enter this transaction in TurboTax Online or Desktop, please follow these steps:
Click IRS answers on Gifts and Inheritance for more information from the IRS on the sale of an inherited property.
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