Furniture and appliances were depreciated as was the rental property itself.
1) Would the depreciable cost basis of the furniture and appliances get added back into the calculation of adjusted cost basis as Improvements? (i.e. Purchase price/settlement costs - Depreciation + Improvements)?
2) Rental was sold for less than what it was purchased for and was sold fully furnished. Consulted with a CPA who said that "you include the cost of all that was in the rental property when sold...whatever was put in as depreciable valued gets added back in?" In reviewing my notes, I'm not entirely clear on that. Was he only referring to coming up with adjusted cost basis as in #1 above or would I ALSO add back in the depreciable cost basis of the furniture and appliances to the selling price of the property?
