1st Yr of Taxes as Landlord - Have a question...

[Rhonda Palmer]

Hi all...first year as a landlord and have a question regarding the taxes we are filing.

We have owned the now-rental home for 15-16 years, decided to move and rent out the old house. We have an accountant helping with our taxes this first year so that we get all of the depreciation, etc. set up properly going forward.

We bought the home in 1997 and since that original purchase have made a dozen or so improvements (prior to moving and making it available for rent). When we were discussing the improvements with the accountant, she stated that we should only be including the improvements done since it was made avail. to rent (several renovations were done) for depreciation considerations. But, she is using the original cost of the home from 1997...shouldn't all renovations done since the original purchase be considered in the cost-basis for depreciation purposes?

Thanks in advance for any input!