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Level 4
December 6, 2020
Solved

Rental expenses

  • December 6, 2020
  • 2 replies
  • 17 views

In 2016 I mistakenly listed a new roof on my rental property as a repair expense instead of a depreciable asset (TT is not at all clear on this!). I am selling the property this year. Do I need to somehow correct this? If so, how?

Best answer by M-MTax

It's past the time when the IRS can even start an audit so you could reduce your basis by the expense of the new roof and call it a day.

2 replies

M-MTax
M-MTaxAnswer
Level 15
December 6, 2020

It's past the time when the IRS can even start an audit so you could reduce your basis by the expense of the new roof and call it a day.

Level 4
December 7, 2020

Wouldn't a new roof increase the cost basis?