Can I Deduct Repairs When Selling Rental Property

Yes it does. You just take to know "the hole-and-corner" which is in plain site. I missed information technology my beginning time likewise.

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

Select Rental Existent Estate Property and proceed.

Select Residential Rental Real Estate and continue.

Enter your description of the asset.

Enter what y'all paid for the nugget in the Toll box.

Enter the "same exact corporeality" in the "price of land" box.

Date purchased or acquired needs to be a date in 2019.

Click Continue.

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

For "Appointment you sold/retired information technology from employ" enter the closing date of your sale.

Then below that select that the item was used 100% for business. (Business organization apply percentage of 100% won't matter, as there volition be ZERO depreciation anyhow.)

For "Enter the engagement that you started using it for business concern" enter the endmost engagement of your sale.

Click Continue.

If asked most the Special Depreciation Allowance, select No and go on.

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

At present continue working it through and you volition be asked for sales information on the nugget.

On the sales information entry screen, exit the "nugget sales price" and "nugget sales expenses" totally blank. Not even a zero in either of those boxes.

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

Just FYI, when sold at a proceeds I just enter my total sales expenses on the screen for the main belongings, provided the difference between the sales cost of the master property and sales expenses, notwithstanding show a gain. And then I go out the sales expenses for all other assets bare.

Remember, when selling at a gain, you "must" show a gain on each individual nugget listed. Fifty-fifty if that gain is only $1 on some assets. Besides, if sold at a loss and then you lot "must" show a loss on each private asset listed - fifty-fifty if that loss is only $one on some assets. This is because is some cases (not all cases) the TurboTax plan just tin can't correctly deal with the depreciation recapture on SCH D when you accept a loss on some assets, and a proceeds on others.

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

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