The thing is that the IRS makes no distinction between major improvements made in the year of the sale or any other year. If the improvements made have more than a year of useful life and they are above the de minimus amounts requiring capitalization then they get added to the basis.
IRS rules on residential rental property
The de minimus amounts that you can expense in the year are under $10,000. So you could expense part of the improvements and capitalize the rest.
@johnjames9
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
