I have a client that sold their rental property and has upgrades that should be deducted from the gain.
When the date of sale was entered the past depreciation flowed to the tax return but, the rest of the
upgrades is not showing as a loss. I don't know how to put that on the asset entry worksheet or how it is done. Can someone help me.
Thank you
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If the upgrades were from prior years and were added to the depreciation schedule, allocate part of the sales price to upgrades on the asset input sheet.
It the upgrades were expensed as incurred, you don't get to include them again.
If the upgrades were in the year of sale I would consider adding them to the expense of sale line under the disposition section.
How do you allocate the prior year upgrades to the asset input sheet?
Thank you
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