Condo roof replacement costs in year of sale

[Kpriya]

We replaced the roof of our condo (commercial rental property) this year and sold the property as well.  The costs were paid as condo special assessment fees.  If we did not sell, I understand it would go as capital investment with depreciation expense every year.  Since we sold the condo this year, would it be a rental expense?  Can I show it under repairs or should I include in the condo association fees?

[Critter]

Yes, since you sold in the same year you can just add it as an expense any way you want.

[Hal_Al]

I'm of the opinion that the proper way to report it is add it  to your cost basis, in calculating the capital gain (or loss) on the sale.

[Critter]

That would be a valid method as well.

[Kpriya]

Thanks Critter and Hal!