@thyname11 wrote:
Are you sure about this?
Yes. What you are reading must be the basis for depreciation (which is the lesser of your adjusted basis or the fair market value on the date the property is converted to rental use).
For a sale, you would use your original cost basis (adjusted for closing costs when you purchased the property) plus improvements to arrive at the basis for that purpose.
[Note that your basis is going to be effectively reduced by the accumulated depreciation deductions]
