Date sold, proceeds and total amount paid for second home in turbotax

[sandrawa]

So in TurboTax I am trying to list the sale of my second home. When it ask me description is that just my address? And when I recieve this investment is that the date that I receive the property that is shown on public record and the date sold is also the exact date that shows on public record?
The amount paid is the amount I paid for the property and proceeds is again what is on public record? I can just get this info off zillow?

[DawnC]

You can use the address as the description.    The date you received it was the day you purchased it or otherwise acquired the home.   The date sold is whatever day in 2023 you sold the home.   TurboTax needs the dates to determine whether you held the property for more than a year or less than a year.  

The basis is your original cost of the property plus any improvements if you purchased the home

The proceeds are the amount you received when you sold the house.

The difference is your gain or loss and is taxed based on how long you held the property.  

Reporting the sale of a second home

[sandrawa]

The basis is your original cost of the property plus any improvements if you purchased the home.

So if I add a radon system or water is that considered an improvement or fence? If so does the improvement need to occur from the date I owned the property until the date I sold the property? 

[JamesG1]

Your cost basis in real property is likely your cost when purchasing the property.

I think a radon system or fencing added to an existing business asset would likely qualify as improvements that may be capitalized.  The date of the improvement which has been capitalized is the date of the purchase, or date of completion of the project or the date placed in service rather than the date of the original asset.

The improvement to a business asset may be depreciated on its own depreciation schedule which is determined when the asset is entered into the tax software.

These assets are depreciated separately from the existing business asset.  Upon disposal of the business asset, the improvements need to be recorded as sold or disposed of when the business asset is recorded as sold or disposed of. 

What counts as an improvement?

Amounts paid are considered an improvement if it results in at least one of the following:

• a betterment to the property
• restoration of the property
• adaptation of the property to a new or different use

Improvements that you make to a property include all direct and indirect costs of the project, including otherwise deductible repairs, that directly benefit the improvement.

See also here.

@sandrawa