How to enter capital improvements into Turbo Tax for primary home sale

[karenbobiv]

We sold our primary house in 2023 that we had as a rental property for the last 3 years.  We qualify for the rule that we lived in it 2 of 5 years, however, we can't figure out where to add the capital improvements we made to the house over the 20 years that we owned the house in Turbo Tax.  How do we functionally get that data into Turbo Tax.  We might be wrong, but our understanding is that it will help with the government recouping the depreciation.  Thanks.  

[DoninGA]

In the section for a home sale you are asked for the Adjusted Basis of the home.  The Adjusted Basis is the Purchase price Plus the cost of any improvements to the home prior to the sale.

[karenbobiv]

Thanks for the quick reply!  So, is there some type of IRS worksheet to show our math in case we get audited?  Or do we just keep a separate document to show what improvements and how much they cost?  Just want to ensure we do this correctly.  Thanks.

[DoninGA]

No, there is no separate documentation.  You need to keep all copies of the receipts of the improvement costs with your tax records in case the IRS every has questions concerning the sale.