Question
Improvements not capitalized on Rental Property that sold
New client has a rental property and historical returns do not show that major renovations were capitalized. Client sold property in 2025. What is the best way to adjust the basis of the rental - I don't see how to do that on the dispostion section of the Asset Entry Worksheet. Do you create assets for the improvements and then dispose with the disposal of the rental property? Do you allocate a portion of the sales price to each of the assets on the asset schedule?
