Announcement

Collapse
No announcement yet.

Sale of residential rental property owner lived in 6 years before

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Sale of residential rental property owner lived in 6 years before

    Owner lived in house for 6 years before converting to rental property
    Owner did major improvements to property while living in house
    These improvements were not picked up and depreciated when house was rented out-only amount on sale to owner picked up and depreciated.
    How should these major improvements be handled now that the property was sold in 2016?
    Is there a certain form that needs to be used report these on?
    Thanks

    #2
    Looks like a Form 3115 needs to be filed to correct the depreciation error.
    Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR

    Comment


      #3
      Improvements were not picked up as part of Orginal cost of house

      Can these Improvements be picked up on this form also and added to original cost of property?
      Thanks

      Comment


        #4
        I would add them to the basis when calculating the sale.
        Believe nothing you have not personally researched and verified.

        Comment

        Working...
        X