Should I factor in the $6500 into the cost basis of the property specifically for my Schedule E entry for Bedroom 3 (master)? Yes, the $6,500 would be factored into the cost basis of the property.
What about the other bedrooms? If you did not do any repairs to the other bedrooms, you would not have any additional expenses to include.
Can I expense a portion of the cost of this repair/improvement(?) as part of the De Minimis safe harbor? No, you cannot expense any part of the repair of your master bath that was used as personal property at the time of the repair. The cost would just be added to the cost basis of your house/that room.
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