As a homeowner I have a follow-up question. In my example the home was newly constructed for me over 15 years ago and the roofing was $10,000 of the total cost. Now the shingles are badly worn and need to be replaced and the replacement of them costs $25,000. Could the difference between the two costs ($15,000 in this example) be added to the basis of the house? The concept is that the original roof is worthless, had to be removed and disposed of, and should be removed from the basis as it is no longer part of the property. Likewise the cost of the new roof then gets added to the property for a net addition of the difference between the two.
Another consideration would be that part of the new roof cost is the removal and disposal of the old roofing material and that portion shouldn't be added to the basis.
