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jimbmoss
New Member

When selling rental property, can I deduct improvement expenses that were made prior to renting it? The property was purchased in 1991 and has been rented since 2009.

The improvements include new flooring, a concrete patio, patio cover, and a block wall. 

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3 Replies
Hal_Al
Level 15

When selling rental property, can I deduct improvement expenses that were made prior to renting it? The property was purchased in 1991 and has been rented since 2009.

Yes. Your cost basis is your original cost plus the cost of any improvements, over the years.

However, you also should have been depreciating those improvements, starting in 2009; either as individual improvement or as the total cost of the building. So,you will have to "recapture" the depreciation you claimed or should have claimed, while it was rented out.

jimbmoss
New Member

When selling rental property, can I deduct improvement expenses that were made prior to renting it? The property was purchased in 1991 and has been rented since 2009.

Thanks for your answer! Unfortunately, I did not think to depreciate those improvements. Any idea as to how I could still claim them without having to file amended returns for the last 10 years?
Hal_Al
Level 15

When selling rental property, can I deduct improvement expenses that were made prior to renting it? The property was purchased in 1991 and has been rented since 2009.

No. And, you can only amend for three years (2016, 17 & 18).
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