The portion of your improvements that are considered to be a capital improvement will be add the adjusted cost basis of the property regardless of its use. A capital improvement will either enhance the property's overall value, prolongs its useful life, or adapt it to new uses. If it does not meet the criteria for being a capital improvement, then it would be considered a repair expense. The repair expenses incurred prior to rental use are not deductible.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
