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posted Jun 4, 2019 8:23:51 PM

How do I report the sale of recreational property that was not rental property or business property?

How do I calculate the cash basis of recreational property I sold?  Can I deduct all the property taxes I paid for all those years?

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Intuit Alumni
Jun 4, 2019 8:23:53 PM

You generally won't be able to claim property taxes in your basis, unless you paid real estate taxes that the seller owed on the property when you bought it, and the seller didn't reimburse you. 

You can, however, claim certain settlement fees or closing costs you paid when you originally purchased the property, and certain expenses for this construction. 

For a more extensive overview of what you can include in the basis of this recreational property, please see "Real Property" on page 2 of IRS Publication 551, Basis of Assets.






1 Replies
Intuit Alumni
Jun 4, 2019 8:23:53 PM

You generally won't be able to claim property taxes in your basis, unless you paid real estate taxes that the seller owed on the property when you bought it, and the seller didn't reimburse you. 

You can, however, claim certain settlement fees or closing costs you paid when you originally purchased the property, and certain expenses for this construction. 

For a more extensive overview of what you can include in the basis of this recreational property, please see "Real Property" on page 2 of IRS Publication 551, Basis of Assets.