Do I inlcude improvements into the cost of residential real estate in Schedule E

[secondturboaccou]

I am trying to establish the cost of the residential real estate as a rental property.  Do I add the improvements into the cost?

[AmyT · Accepted solution]

If the improvements were made before you started using the property as a rental, you can include them in the cost of the rental.

Any improvements made after you placed the rental "in service" (had it available to rent) should be entered as separate assets.  You are also able to do this with improvements made before then rental was in service, if you wish to keep track of this information separately.