Need Clarification on Adding to Cost Basis of Rental

[PubliusJunior]

A question about what improvements should be added to the cost basis when selling a rental home. A few years ago, we had the home re-roofed, which appears to be the type of expense that's added to the cost basis. However, in checking that year's return, we deducted the cost of re-roofing under rental repairs.. Can we still add the re-roofing expense to the cost basis, now that the rental has been sold?

[Coleen3 · Accepted solution]

No, you can't take the same deduction twice. Properly, it should have been deprecated as it was a major improvement but since you did take it as an expense, you have already used that amount to lower the income.

[PubliusJunior]

Thanks so much for your quick reply. Just to clarify, had the roofing expense been depreciated rather than deducted as a rental repair, could it then be added to the basis when the rental is sold? Thanks again for your help!

[Coleen3]

Yes.