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Level 4
Dec 6, 2020 1:09 AM UTC
Solved

Rental expenses

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?

M-MTax
M-MTaxAnswer
Level 15
Dec 6, 2020 10:06 PM UTC

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
Dec 6, 2020 10:06 PM UTC

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
Dec 7, 2020 4:57 PM UTC

Wouldn't a new roof increase the cost basis?