When asked for the cost of an Asset for a rental property, can we also include in that amount, the cost of 2 room additions we did? House cost 330k but put in 100k.

[Sccrgrl]

Thank you, even if these room additions were done to the house before it was a rental?

[Sccrgrl]

Even if the additions were done before this property was considered a rental?

[KrisD]

Yes, that is fine. Depreciation won't begin until it is an active rental. The improvements are part of the house. Once depreciation starts, if you make improvements, they will be depreciated on their own, since they will have a different "placed into service" date than the house.

[KrisD]

Yes, good point from the comment from TaxPro below. The program will ask you to value the land separate. That value will not be depreciated. Thank you.

[Sccrgrl]

Great, thank you so much for the input.

[Anonymous · Accepted solution]

but don't forget some of the $330K cost is for land which is not depreciable.  but should be included in the rentals assets 

[KrisD]

Yes, improvements are added to the basis of a rental.