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Which form to use to list capital improvements on a second home which sold?

Staxmag
Level 2

I'm told there is a form associate to Sch D to list the capital improvements made to a second home over a number of years. The house sold in 2020 and this would support the step up in basis

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5 Comments 5
Just-Lisa-Now-
Level 15
Level 15
Add the improvements to the basis, use Sch D to report the sale.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
Staxmag
Level 2

Thanks for your reply Lisa and, yes I did that. But is there a specific form/worksheet to list the improvements/renovations? Is it even a requirement? I think not, but just want to be sure. 

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jeffmcpa2010
Level 11

You could open a "Preparer Notes" page (F6 PN will get you there) it transmits with the return.  You can create a schedule there if it makes you more comfortable and show your basis computation.

abctax55
Level 15

"....step up in basis"

Making improvements to property owned is not "Stepped Up Basis".  That's a completely different tax concept.

Words/phrases are important in this business.

 

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Staxmag
Level 2

Completely agree, sorry for the poor grammatical hygiene.