That is correct. The cost basis less the salvage value divided by 27 and 1/2 years. The salvage value is defined as what you can get from this property after the entire depreciation period passes through. Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. And yes, the remaining first roof expenses can be depreciated in that year.
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