Today I looked online for the first time to find what the "land value" is because I know I have to base my depreciation number on the value of the house itself and any material improvement and of course divide everything in two because I still live in half the house.

Materials?

Some examples are after my tenants moved in, (all my own labor)  I added a hand rail to a fence/railing I have going along stairs about $ 225 worth of materials.

Reed Goossens Reed has great material and posts in BP in this subject.

You can do all the work yourself and the cost of materials will be either deductible or capitalized, however, you'll have to pro rate it against the rental portion of the home.Since your fiancé is not legally married to you, the rent she pays is considered rental income and you are then allowed to deduct a potion of your costs associated with the rental portion of the home.

Eduard,Become an avid study of the material available on Bigger Pockets.  

@Pannell Catherine - You'll report the income and all of your associated expenses (mileage, telephone, internet, office supplies) on a Schedule C.Good luck!

Worst case you can at least offer to pay for the cost of the materials on a credit card which would leave you only having to pay cash for the labor.

Amazing how the internet speeds things up.

Please see below for the breakdown: Current state appraisal value: $270,000Value after renovations: $330,000 (using a 2 mile radius)Mortgage debt: $78,110.34Credit line: $130,000Credit line fee: $100Interest rate on credit line: 3.5% (can freeze rate three times) Labor quoted by contractor: $50,000 (doesn’t include window replacements as not yet quoted)Materials: ???