Rental property was renovated after tenant moved out to sell it at fair market
value of $150000. After sale, do renovated expenses of $18000 (new paint, new kitchen countertops, repair to HVAC and plumbing etc..) be 100% improvement expenses and NOT SPLIT to land by the Improvement to Land ratio (85% improvement and 15% land) for which the rental property was depreciated for the last 11 years.
Then, do the land sale expenses in this case be split only for sale commission and other sale charges in the HUD sale statement and not including any portion of the above mentioned $18000 of renovated expense.
Thank you for your answer
