I have a couple questions:
1) The income from my rental property is close to the cost for repairs, maintenance, taxes, insurance, etc., which leaves me little to sometimes negative profit. I've also made some improvements. Do I have to claim those improvements and depreciate it? I'm reluctant as I don't want to add that to the recapture costs.
2) If I didn't claim the property depreciation on my rental over time and then sell it, how does the IRS determine what my cost basis is for recapture?
