ColeenD3
Expert Alumni

Investors & landlords

Always go straight to the IRS. The difference here is that you did all the work before you placed the property in service. Any replacement appliances would have the 5 year life.

Per Pub 527:

 

Increases to basis.

 

You must increase the basis of any property by the cost of all items properly added to a capital account. These include the following.

  • The cost of any additions or improvements made before placing your property into service as a rental that have a useful life of more than 1 year.

  • Amounts spent after a casualty to restore the damaged property.

  • The cost of extending utility service lines to the property.

  • Legal fees, such as the cost of defending and perfecting title, or settling zoning issues