Yes, your last post was clear on which form, thanks.
So if understand this correctly the costs basis I use in your formula above is the cost basis that was used on the IRS returns starting the year I used the property for rental purposes (eg 300k)? If so can I to add any capital improvement expenses (eg 40k remodel) made prior to the starting of the rent, or does that cost basis number reported to the IRS (300k) at the start of the rent assume to include any improvements made (40k) to the property prior to the start of the rental?
