From what I can tell on TurboTax I can take the full depreciation for the roof this year.
No you can't, and you most certainly don't want to.
Do I need to add it to cost basis?
You don't have a choice here. It gets added in the Assets/Depreciation section and depreciation starts on the date it was placed in service. It's classified as residential rental real estate and set up for 27.5 years of depreciation.
In the tax year you sell the property, all prior depreciation taken is recaptured and taxed in the year of sale. You have no say or choice on this. If you did not depreciate the property or it's related assets, then you are required to recapture the depreciation you *should* have taken, and pay taxes on it in the year you sell the property. Overall, you'll have at most 4/12 of a year of depreciation on this specific roof asset. So it won't be that much recaptured really.
Recaptured depreciation is taxed anywhere from 0% to a maximum of 25%.
So after you enter the roof asset in the assets/depreciation section and finish working through that property in it's entirety, you will work through that same property again to report the sale. The guidance below is provided for clarity and to make your tax reporting life easier.
held vacant prior to Sale November 2019.
Doesn't matter, as that does not change the fact that the property remained classified as residential rental real estate. It was 100% business use in 2019 with zero days of personal use. If asked for days rented, you count the days from Jan 1 up to the closing date of the sale.
Reporting the Sale of Rental Property
If you qualify for the "lived in 2 of last 5 years" capital gains exclusion, then when prompted you WILL indicate that this sale DOES INCLUDE the sale of your main home. For AD MIL personnel who don't qualify because of PCS orders, select this option anyway, because you "MIGHT" qualify for at last a partial exclusion.
Start working through Rental & Royalty Income (SCH E) "AS IF" you did not sell the property. One of the screens near the start will have a selection on it for "I sold or otherwise disposed of this property in 2019". Select it. After you select the "I sold or otherwise disposed of this property in 2019" you continue working it through "as if" you still own it. When you come to the summary screen you will enter all of your rental income and expenses, even it it's zero. Then you MUST work through the "Sale of Assets/Depreciation" section. You must work through each individual asset one at a time to report its disposition (in your case, all your rental assets were sold).
Understand that if more than the property itself is listed in your assets list, then you need to allocate your sales price across all of your assets. You will only allocate the structure sales price; you will NOT allocate the land sales price, since the land is not a depreciable asset. Then if you sold this rental at a gain, you must show a gain on all assets, even if that gain is $1. Likewise, if you sold at a loss then you must show a loss on all assets, even if that loss is $1
Basically, when working through an asset you select the option for "I stopped using this asset in 2019" and go from there. Note that you MUST do this for EACH AND EVERY asset listed.
When you finish working through everything listed in the assets section, if you ever at any time you owned this rental you claimed vehicle expenses, then you must also work through the vehicle section and show the disposition of the vehicle. Most likely, your vehicle disposition will be "removed for personal use", as I seriously doubt you sold your vehicle as a part of this rental sale.
