cskcpa20
Returning Member

Deductions & credits

You have not indicated if you were taking a deduction on Sch E for the rental of your property to your daughter. If you were then you might have a taxable event when you sell it. 

It is just something to consider. If you haven't been renting it to her at a fair market rate or she hasn't been paying the rent then it might hurt you to treat it like a piece of rental property. Depends a great deal on how you have been reporting it - or if you weren't reporting it. 

Either way, putting a new roof on doesn't get taken as a deduction. It reduces the amount realized from the sale and is treated as a selling expense. 

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