☰
✕
Sign In

Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 1
posted Jun 4, 2019 4:09:36 PM

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

0 2 714
1 Best answer
Level 15
Jun 4, 2019 4:09:37 PM

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.

2 Replies
Level 15
Jun 4, 2019 4:09:37 PM

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
Jun 4, 2019 4:09:39 PM

okay  thanks