Cost basis for a rental sale

[UG Marshall]

If you make some improvements to a rental property, say put in new windows to the building, and claim those expenses in that year, can you use that improvement to elevate the cost basis later when you sell the property?

[DavidD66 · Accepted solution]

No.  If you treated the window replacement as an expense, you cannot add it to the cost basis of the property.  You have already taken a deduction for the windows - you can't also use them to reduce your gain (increase your loss).