Babak
Level 3
03-06-2021
12:55 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
My client owned a property that never was used as rental nor as second home. They bought it 10 years ago, made so much improvements and sold it in 2020. They never reported it in their previous tax years and never depreciated it. Now that I'm reporting the sale, I don't know how to include the improvement in the sale. Should I add it to the cost basis? or is there another way I need to report it?
Labels
sjrcpa
Level 15
03-06-2021
01:03 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Add it to the original cost.
Ex-AllStar
itonewbie
Level 15
03-06-2021
03:09 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
You meant your client bought the property, made improvements over the years but that property was never used by anyone and had been left vacant for 10 years?
---------------------------------------------------------------------------------
Still an AllStar
Still an AllStar
Babak
Level 3
03-06-2021
03:15 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
That's correct. Basically improvements happened during those 10 years without anybody living in it.
