Taxpayers owned and lived in a home from 2008 until 2019.  In 2019 they rented out the home for two full years and then did a 1031 exchange for other properties.
They did extensive remodeling at the time they lived in the property and then additional remodeling before they started to rent and then additional renovations when they did the 1031 exchange.
My questions is regarding how to treat all these improvements? How do you incorporate the before rental while they were living in the home with the rental improvements? The rental-related improvements should be capitalized and deferred and then recaptured at the time of selling the 1031 properties.  But what do you do with the original improvements?  When do you add them to the basis if ever?
Thank you for any advice relating this question.