My wife and I have had a rental house since 2015. In 2023, we only rented it during January. We then made major repairs (inside and outside), some of which could be partially considered as improvements. For example, the half bath/laundry room had extensive rotting from a water leak, so in the process of repairing the damage, I made the same area a full bath plus laundry room. The house was available for rent during the renovations with no takers. I did all of the work myself and decided I was done, so we sold it in June 2023 which will result in significant capital gains. What's my best approach regarding the repairs/improvements made to either increase my cost basis or increase my deductions through repair costs?
