Hal_Al
Level 15

Investors & landlords

I agree with maglib, you do not enter the new roof as an asset. It has no cost basis.  You continue to depreciate the original building cost basis on the original 27.5 year schedule.
The only thing reportable on the tax return is the $3000 gain. But, I'm not convinced the $3000 is a capital gain. It may be ordinary income.