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Investors & landlords
All of these costs (closing costs, renovations, etc.) should be added to the depreciable basis of the home. They increase the cost of the home and so you depreciate them over time.
You should have added them to your basis when you converted the home to a rental and it would have given you a larger depreciation deduction over the life of the rental as well as reducing your gain when you sold it.
You can go back up to three years on your tax returns so if you had the rental on your taxes as far back as 2019 then you can go back and amend any tax returns to increase the basis prior to the sale. (2019 deadline is April 15th, 2023) If it was more than three years ago it is lost to the ether.
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‎February 15, 2023
7:26 AM