@Critter, it seems better to set this up the way that @Carl described it - that way the value of the inherited property and the value of the renovation are broken out separately on the return. Thus, if there is any question about the matter on the part of the IRS (perhaps if they compare your return to your property taxes and wonder why you have a higher valuation for the buildings vs the land in your return) you can right away see that it is due to a renovation that wasn't considered in the property tax assessment. So, you don't have to remember that you added in this cost. Instead, it's spelled out for you, so you will know right away to go to the invoices and receipts for the renovation to prove your case. Right?
