They are added to the basis only if they are not considered still rentals. Otherwise they have to added as depreciated capital expenses in Schedule E, so for what the person spent in 2021 it will take depreciation and in 2022 when it was sold as a rental still the same method is used and when the calculations are done by turbo tax it will take the balance of depreciated items off automatically. Unless they moved back in and are delcaring it as their primary residence and qualify for the exclusion and the repairs/improvements were done while they occupied the home would they add them to the basis otherwise they have to treat it has a rental expenses even if it was vacant at the time and then sold.
