Hello,
If a capital improvement incurs expenses over two consecutive years, do you adjust the basis over those two years? For e.g. say two years ago, in the first year of the project, I paid $50K (permit fees, foundation, etc), next year I paid $30K (lumber, finishing, etc.). Do I adjust the basis over those two years in my tax return - first year $50K, next year $30K? Or do I wait until the whole project is over and then adjust the basis with $80K after the second year?
