I've owned a single family rental property for 30 years. In 2019 we did a major remodel in preparation for sale. The renovation cost was about $90k including material costs and contractor costs. The project completed by Oct. 13, 2019 and was listed for sale but the eventual sale did not close until Jan 10, 2020.
How do I handle this on my 2019 taxes? Do I need set up depreciation items for separately for appliances, sinks, counter tops, floors, etc ? How do I handle the contractor fees? Are these expensed in 2019 or depreciated?
When I eventually do my 2020 taxes the cost basis of the rental should reflect the $90k cost I put in the year before.
Thanks,
Brian
