Ouch! $150K building. Don't imagine a $3k A/C is a window unit depr over 5 years. Last idea before we depreciate over 27.5 years: “Unadjusted basis” usually means a building’s original cost (also called its cost basis), not including the cost of the land. To determine a building’s unadjusted basis, you **don’t** subtract the annual amounts you deduct for depreciation. **** But you add the value of any improvements you make to the building while you own it and that you are depreciating along with the rest of the building.
