No you cannot just add it to the cost of the property when you sell it under the tax law.
Yes you should take the depreciation because the tax law, at the time of sale, asks for the depreciation that was 'allowed or allowable'. It's basically use it or lose it. You will be required to account for the depreciation expense even if you didn't use it.
Enter your renovation as a new asset on your rental activity and use the depreciation now. Even if you have a loss that might need to be carried over, you will be able to use all of that loss in the year of sale (if not sold to a related party for less than fair market value (FMV)).
@papa281
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