If you have improvements to your rental, add that cost as a separate real estate asset for your Schedule E rental property. You wouldn't change the basis of an existing asset; you add a new one.
However, you may be able to write off these costs if you qualify for the Safe Harbor Election for Small Taxpayers. TurboTax will ask you about this election under the Assets/Depreciation section of your Rental Property. If you choose this election, you can expense up to $10,000 in costs that would otherwise be depreciated over a very long time.
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