qbteachmt
Level 15

@conveniencebrokerage 

"The house bought in 2018,"

Then the Cost is the initial investment, there is Land and Building(s) and these are treated differently as Assets, because Land doesn't depreciate. And that depreciation should have started with the first year this was owned and rented. You cannot jump into this 3 years later.

"the house is rented right now the rental income for this person is 41,400 for the year,"

That means you have Income and there should be operating expenses.

"he stated he did repair for amount 17,500 for home thanks appreciate for the help"

And that Improvement is likely tracked as its own asset. Example:

Fix a broken window = Repair Expense.

Replace all windows = Improvement as Asset investment.

You need to find someone to mentor you on this, not over the internet. This is the place to learn how to use a program that you might be having trouble with, but you are supposed to know the regulations, what asset class, which depreciation schedule, how to figure basis, how to handle expense vs improvement, gain/loss, etc, for your client. You get that from professional training, continuing education, updates on the new tax rules, etc. You don't keep asking on the internet these basic questions for doing what you should know is your professional responsibility.

Asking which screen is the right screen or how to pull up the form you want, is fine. But this is not the place to expect to get training on tax return preparation for your clients.

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