I have an apartment duplex and added some plants/shrubs during the 2007 year. My question is: Can I expense these costs or is this cost added to the basis of my rental property? Also, I added paved parking lot. From my research it appears that this would have to be capitalized. Am I correct in that assumption? One final question: I used to live in one of the apartments, but now rent them both. Do I use the lower of the Fair Market Value and the current Cost Basis to decreciate the now rented 2nd apartment?
