If your property fell between the FMV at the date put into service and your cost plus improvements on that same date, you would zero out the gain and/or loss, however you need to recapture the depreciation.
Any improvements made after the date placed into service would need to be listed as separate assets.
For example, if you replaced the roof on the rental, and the cost to replace the roof was 5% of the home's basis, you would need to allocate 5% of the sales price to the roof and claim the gain if any.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
