Question

Can include these in the cost basis of my property? - New fridge, wine cooler, hood, shades - Capital assessments (one-time & monthly)- Building fees for alteration

Forum|Forum|1 year ago
March 20, 2025
2 replies
0 views

For context these costs are part of complete gut renovation of my cooperative apartment

No, these items should have been expensed on the property as they happened.

I'm not sure what capital assessments are.
If building alterations were substantial they may qualify

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

R

rahulv85Author

My property was my primary residence for some time. I did the gut renovations when I had initially acquired the property while it was my primary residence and subsequently after living there for a few years, I converted it to a long-term rental.

The gut renovations of the co-op apartment were substantial and also included renovating the kitchen inclusive of installing new appliances such a fridge, wine cooler and hood. As part of renovations, I had also installed new shades. Can I add the new kitchen appliances and shades to the apartment cost basis before I converted to a rental?

Hal_Al

Q. Can I include the costs of a complete gut renovation of my cooperative apartment in my cost basis?

A. Yes, generally. You cannot include things that would be classified as furnishings (refrigerator, shades).

What does "my property" mean? Your home, your rental property? The answer is the same either way, but dome of that could be expenses or depreciated for rental property.

R

rahulv85Author

Thanks. It is a cooperative apartment and I renovated it was while it was my primary residence and years later I converted to a rental. I am a bit confused - So can I add the cost of new fridge, hood, wine cooler to the apartment cost basis as it was done as part of a complete gut renovation?

I cant expense it as it was a primary residence when I did the gut renovations. So only option is to capitalize it to the cost basis.