City of Wilmington DE billed me for

[RedPreac]

City of Wilmington DE billed me 19K for a vacant rental property fee which was under revocations due to thief, COVID, and storm damages.  I am selling the property are the vacant property fees considered an increase to Basis?  Also, if I did not report any depreciations during rental years is it still considered as a decrease to Basis?  

[RobertB4444 · Accepted solution]

You can add the vacant rental fee to the basis for the property when you are selling it if that was part of the expenses for fixing it up and preparing it for sale.

You are required to take depreciation on rental property when you show it on your tax return.  If you chose not to use it for the deduction it is considered taken anyway and you should enter the amount of depreciation that you should have taken as part of the sale.

@RedPreac 

[RedPreac]

Robert84444,  Thank you so very much for this awesome information...With your help I am now able to complete my session with "Uncle Sam."  Again, thanks and be blessed!!!