Our renter vacated our rental property in Sep 2021. In Oct 2021, we decided to sell the property and started major renovations. The renovations completed in Jan 2022 and the house sold and closed in Feb 2022. Do I need to add the cost of the capital improvements from the renovation to my 2021 tax return? This would probably account for 80% of the cost since it was completed in 2022. Can the capital improvements be added when I do my 2022 taxes and enter the sale of the rental unit?
