I bought my primary home 5 years ago. It was a new property and the building had a lot of construction issues. I had to sue the builder and I received $200k in settlement money. Out of the $200k, 33% went to the attorneys as legal fee, basically $66.67k. The rest, I put into repairs. I still had to pay about $40k on top of that to complete the repairs. Prior to the lawsuit, I had to hire a construction company to perform investigation for scope of repair for the construction defects which cost me about $20k.
Last year, I moved out and rented the place. I need to enter rental income in my tax filing this year. Which of the following costs can I add for depreciation of property to adjust my cost basis?
$20k which I paid for scope of repairs investigation
$40k on top of the settlement money to perform the repairs
$66.67k in legal fees
Please advice. Thanks!