Can property improvement be added back to cost basis of rental home when selling the rental home?

manbeing — Sat, 01 Jun 2019 17:49:32 GMT

I bought a rental home 5 years ago and installed a new roof ($4,000) 3 years ago. Since then, the roof is counted as a depreciated asset. Last year (2018) I sold my rental home. Since this roof isn't recently installed, can I still add the original price of roof, $4,000 back to the cost basis of rental home to reduce capital gain? I will surely do the depreciation recapture.

If I cannot add the cost of roof to cost basis of rental home, the sales price of the roof will be a fair market value? or original price minus depreciation claimed over the years?

Thanks.

Yes, you can add the original cost of the new roof to the...

MinhT — Sat, 01 Jun 2019 17:49:33 GMT

Yes, you can add the original cost of the new roof to the cost basis of your rental home.

topic Can property improvement be added back to cost basis of rental home when selling the rental home? in Investors & landlords

Can property improvement be added back to cost basis of rental home when selling the rental home?

Yes, you can add the original cost of the new roof to the...