Sold rental property. Am I correct – basis (purchase price). Add what it cost me to purchase the house – (title insurance, other legal costs survey, etc) and any improvements made – That gives me my adjusted basis for the house.
Then I take what I sold the house for (which I rec’d a form) with the sale price – subtract commissions and legal fees that will give me the selling price. Then I subtract so say adj. basis is 100,000 and sale price after deductions is 110,000 I made 10,000 – then I have to ?add back in the depreciation say it was 20,000 my amount for capital gain would be 30,000 is that the jist of it? Read several different articles and get more confused. Thanks
And, thanks for the link.
Understand about the depreciation when sell. Made the mistake of not taking depreciation years ago on a property had as personal home, couldn’t sell so turned to rental when moved…. then about 6 yr later sold, wow – even though didn’t take depreciation had to account for at the sale for the IRS. Never make the mistake again 🙂