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Deductions & credits
No, the cost of replacing the roof is not deductible as a selling expense, it will be added to your basis in the house. It will reduce your gain (or increase the loss) on the sale of the house to your daughter.
See this section of IRS Publication 523 for Examples of Improvements that Increase Basis. Those same rules apply to the improvements to a rental property.
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May 26, 2020
2:44 PM
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