Thanks, Carl! This is helpful.
My original reply got removed for some reason. Hopefully this one passes the test and I can cover the points you made.
I think I've made a mistake to put any of these improvements into the asset table on the schedule e form, is that right? I should only include the assets that were added/improvements made while the property was actively rented. I should have added these to cost basis of the property for 2016 taxes.
For more info on my situation. The renter moved out mid June 2019, and the house sold at the end of November. In that time it was vacant, either while I was deciding what to do with it, renovating, or on market. The total of those renovations were $7.5k and the only payment that was over $2.5k was one for $2,550. I assume from what you've said, that I only put these costs into the expenses of the property in the cost basis calculation (along with purchase expenses and price, etc). Is that correct?
