You must increase the basis of the property by 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.
Those improvement should be entered as separate Rental Assets and are subject to depreciation.
For more information please check How do I handle capital improvements and depreciation for my rental?
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
