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Level 1

When adjusting basis for capital gains calulcation on rental property, do improvements need to have been depreciated?

I see many comments about adjusted basis when caluculating capital gains on a rental property. What I don't find ( not in Turbo Tax and not on the IRS website) can I only use improvements that were depreciated or can I also incude improvements that totally expensed in the year they were purchased I've owned the building 30 years so lots f small things - new appliances , new hot water tank, etc

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Level 11

When adjusting basis for capital gains calulcation on rental property, do improvements need to have been depreciated?

You can not adjust your basis for improvements that were expensed (not depreciated).

That would amount to "double dipping", since you already took a tax deduction for the expenditure.

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Level 11

When adjusting basis for capital gains calulcation on rental property, do improvements need to have been depreciated?

You can not adjust your basis for improvements that were expensed (not depreciated).

That would amount to "double dipping", since you already took a tax deduction for the expenditure.

Level 1

When adjusting basis for capital gains calulcation on rental property, do improvements need to have been depreciated?

okay  thanks