Tax help on duplex that used to be owner occupied

[Joe Doman]

Hello everyone,

Seems like this might be a question for a CPA, but wanted to hear from BP members.

In 2012 I bought a duplex where i lived in one side and rented out the other. In 2013 remodeled the bathroom for $5,000 then in 2014, I purchased a single family home where i currently live and we rented out our side of the duplex.

Would I now be able to add the $5,000 to my original basis and depreciate now that the side i lived in is rented?? We did this remodel along with other updates to our side with the idea of renting it out.

Looking forward to any advice. Thanks!