Ok, so....let's say we sold the house for 179,000. (Land portion is 23,300).
You're saying I just take part of that $179 and say, "hey this was for the roof alone. Since we paid $7259 for the roof, I guess we sell it for $7259." (But 0 for sales expenses for it, 0 for land for roof asset since it's not land).
Then, when we show the sell of the house asset itself, instead of showing $155700 for asset and $23,300 for land (which equals $179, and what I originally had entered), we would actually show $148441 for the sales price ($155700-$7259). And the IRS will figure out somehow that we've accounted for everything and not think we're misreporting (I know they received a 1099-S that shows $179, so I just assumed my actual *house* asset has to show that total when sold, but you're saying it doesn't). Is this correct?
