I bought a rental on foreclosure 12 years ago for 32k. I did about 20k worth of work on it so it was livable.
I did not claim that work on my taxes for depreciation. Depreciation is in the 32k for recapture. It was a roof and addition remodel.
I sold the property for 70k with 6k sale commissions.
How do I handle this? Is the basis 52k? Is the sales cost 26k?
