rental

[Shevagirl123]

I purchased a home for 15000 on 9/18/2008 , took a mortgage out 10/20/2008 for 35,600. I lived in it until 2013 then turned it into a rental. I sold the property 9/24/2021 for 90,000. when it asked cost of asset, do I just put the 15000 or can I put the 35,600?

[ColeenD3 · Accepted solution]

Your cost is $15,000. Your mortgage has nothing to do with your basis. You must also recapture your depreciation.

Full steps for entering rental property:

• The first entry for the sale is found during the set-up of the property: Tell us about your situation this year/Click Sold or disposed of property.

Next, the asset section of expenses will already be checked: 

*Assets

*Sold rental property

Includes info on the property you sold or disposed of. Since we know this applies to you, we've already selected it.

• After you click on Asset, you will be asked about the purchase: Tell Us About This Rental Asset
• In the screen Tell Us More About This Rental Asset, you will indicate the sale the date of the sale and the date you began using it for business. You can see the screenshot in a previous answer.
• Next: Confirm Your Prior Depreciation
• Next: Special Handling Required?
• Next Home Sale?
• Next: Sales Information. This is where you will be asked about the sales price.