I have a similar situation. My rental sold for 600000. I determined the value of the land was 250000 and the house plus improvements was 350000. I had a new roof installed in 2016 at a cost of 28680. If I understand correctly, I now need to work backwards and determine the "sale price" of the roof (I used 28681 or a gain of $1). Now I need to subtract 28681 from 350000 to determine the "sale price" of the house without the roof. So then $350000-28681=$321319 becomes the "sale price" of the house without the roof? Now Form 4797 shows two columns instead of one. Property A is for the house without the roof and Property B is for the new roof only, which will have its own depreciation and gain calculated. Is this even remotely correct?
I also have two other improvements; added city water and installed new A/C. I assume they would be handled the same way and further decrease the sale price of the house only (i.e. house without roof, without A/C and without city water) and listed separately.
