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Yes, you will add any improvements done before the conversion to rental property as an adjustment to basis which will increase the cost and decrease the amount of tax due from the sale.
if you added improvements before the rental period, if you haven't been depreciating them you have a problem. the IRS says that you have to compute the depreciation that would have been taken during the rental period and thus report recapture of that amount upon sale. correction for not taking it requires filing form 3115. this is something you may need to leave to a pro.
there is an out. if the Fair Market Value on the date you started renting was less than the cost of home and improvements, then if you computed depreciation using the lower FMV you have done it rcorrectly and there would be no need to depreciate the improvements. their cost then would be added to the original cost of the property
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