I sold a rental property I have been renting out for the last two years. I have been depreciating a new roof on the rental property. How do I allocate the gain and expenses between the land, structure and roof? For example, assume at the time of first rental, cost basis of the house is $500,000, the cost basis of the roof is $30,000. Assume the sales price of the rental property is $700,000 and the expenses for the sale are $10,000. I can see in the tax records that the land is assessed at $100,000 but was only $95,000 when I bought the house. I know similar questions have been asked before, but I can't find a situation similar to this one. Thanks for any help.
