Are Repairs Being Made To A House Which Will Be Rented, Tax Deductible?

Yes it does. You just have to know "the hush-hush" which is in plain site. I missed it my outset time besides.

On the Assets/Depreciation screen click the "Add an Asset" push button.

Select Rental Existent Estate Property and continue.

Select Residential Rental Real Estate and continue.

Enter your description of the asset.

Enter what yous paid for the asset in the Cost box.

Enter the "same exact amount" in the "cost of state" box.

Engagement purchased or acquired needs to be a appointment in 2019.

Click Continue.

Select "I purchased the asset new" *****AND***** select "The detail was sold, retired, stolen, destroyed, ......"

For "Engagement you sold/retired it from utilise" enter the closing engagement of your sale.

And so below that select that the particular was used 100% for business. (Concern utilise percent of 100% won't affair, as there will be Zilch depreciation anyhow.)

For "Enter the date that you started using it for business" enter the closing date of your sale.

Click Go along.

If asked about the Special Depreciation Allowance, select No and continue.

On the "Special Handling Required?" screen you lot *must* select no.

Now go on working information technology through and y'all will be asked for sales information on the asset.

On the sales data entry screen, leave the "asset sales toll" and "asset sales expenses" totally blank. Not even a null in either of those boxes.

Enter your sales cost of this asset in the "Land Sales Price" box, and your sales expenses for this asset in the "State Sales Expenses" box.

Only FYI, when sold at a gain I just enter my total sales expenses on the screen for the chief holding, provided the difference between the sales cost of the main belongings and sales expenses, nonetheless show a gain. And then I leave the sales expenses for all other assets bare.

Remember, when selling at a gain, y'all "must" show a gain on each individual asset listed. Fifty-fifty if that gain is but $1 on some avails. LIkewise, if sold at a loss then y'all "must" prove a loss on each individual asset listed - even if that loss is just $ane on some assets. This is because is some cases (non all cases) the TurboTax program just can't correctly deal with the depreciation recapture on SCH D when yous have a loss on some assets, and a gain on others.

Source: https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/improvements-repairs-to-rental-property-prior-to-sale/00/503425

Posted by: dusekoung1948.blogspot.com