@TinkerBell01 wrote:
Thanks so much for your thorough answer! You actually answered another question I had about replacing the roof twice because I did replace it twice. I had expected that you could only count the latest replacement.
Correct, you include permanent improvements that are still part of the property.
Also, regarding double-dipping. It depends on whether you expensed or depreciated the expense. You generally have to depreciate improvements, meaning you add it to the cost basis and then depreciate it yearly. If you took an expense safe harbor, you can't count that towards your cost basis, but if you added it to your cost basis and began taking depreciation, that does add to your cost basis (as well as creating depreciation recapture).
