renovations for selling rental property

[bebop]

Where do I enter the cost of a major renovation project done to prepare a rental property for sale. Do I add it to selling expenses when entering the sale of the  property? I read somewhere to add it to the basis, but I don't know how to do that without depreciating it and I know I'm not supposed to do that.

[IRonMaN · Accepted solution]

Adding to selling expenses will get you to the same bottom line as adding directly to basis.