In TurboTax (TT), enter at:
- Federal Taxes tab (Personal in Home & Business)
-
Wages & Income
-
“I’ll choose what I work on” Button
Scroll
down to:
-Investment
Income
-Stocks, mutual funds, Bonds, Other (Real estate is other). Answer no, when
asked if you got a 1099-B. then follow the interview. Choose "Everything
else", not 2nd home, as investment type.
The capital improvements, and the repairs, are added to your cost basis, They are not entered separately. The carrying costs (e.g. insurance, mileage & utilities) of
investment property are deductible as investment expenses, but are subject to
being a misc. itemized deduction also subject to the 2% of AGI threshold. Real
estate (property) tax may be deducted on schedule A, under
taxes, without regard to the 2% rule.
Alternatively, taxpayers can elect to capitalize (add it to your cost
basis) the carrying costs of unimproved and nonproductive real property,
real property under development or construction.
Mortgage
interest is only deductible to the extent of other investment income and
not subject to the 2% of AGI rule, but can be capitalized. (http://www.nolo.com/legal-encyclopedia/tax-deductions-vacant-lands.html)
