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Investors & landlords
The capital improvements should also be split as appropriate, depending on where they were made. Any portion applicable to the personal side would be added to cost basis of that side. Then, when that side was converted to a rental, you'd use that cost basis for depreciation without separately depreciating them.
On the rental side, they should have been added as assets and depreciated when added, and depreciation recaptured on sale.
On the rental side, they should have been added as assets and depreciated when added, and depreciation recaptured on sale.
‎June 6, 2019
1:49 AM