When adjusting basis for capital gains calulcation on rental property, do improvements need to have been depreciated?

mbardshore · ‎June 4, 2019

I see many comments about adjusted basis when caluculating capital gains on a rental property. What I don't find ( not in Turbo Tax and not on the IRS website) can I only use improvements that were depreciated or can I also incude improvements that totally expensed in the year they were purchased I've owned the building 30 years so lots f small things - new appliances , new hot water tank, etc

Hal_Al · ‎June 4, 2019

You can not adjust your basis for improvements that were expensed (not depreciated).

That would amount to "double dipping", since you already took a tax deduction for the expenditure.

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mbardshore · ‎June 4, 2019

okay thanks

When adjusting basis for capital gains calulcation on rental property, do improvements need to have been depreciated?

Investors & landlords

Investors & landlords