Replaced roof on rental. Reducing basis by undepreciated old roof basis remaining using an authoritative article (using the PPI). How do I reduce the original basis?

Placed in service 8/17/15.  House basis, net land 50,215; Land 16,534.  Using supporting article by Withum (article cites IRS approval & example is replacing a roof) & Fed website for Producer Price Index to address valuations. https://www.withum.com/resources/the-basics-of-partial-asset-dispositions/ and https://data.bls.gov/timeseries/PCU23816X23816X

Here is the crux.  How do I make Asset Entry worksheet "accept/acknowledge" decrease in basis for old roof portion torn off? I was able to do a Casualty Loss for $6057 cost attributable to old roof (e.g. FMV before event) less FMV after event $1427 which squeezed my calculated loss figure of $4630 on F4797, line 14 as a loss from F4684.  However this is an ordinary loss and the roof is a capital asset (right?)

For the new replacement roof (2024), I imagine I have to begin its 27-1/2 yr depr in '24 and not try to "add it to the original basis" when it was placed in svc in 2015

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@JohnTheCPA wrote:

How do I make Asset Entry worksheet "accept/acknowledge" decrease in basis for old roof portion torn off?

For the new replacement roof (2024), I imagine I have to begin its 27-1/2 yr depr in '24 and not try to "add it to the original basis" when it was placed in svc in 2015

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You delete the old Asset Entry Worksheet and create two new ones. 

For example, let's say the original Basis is $200,000 and it has $20,000 of prior depreciation.   Then you determine that the roof original cost/value was $20,000.  You would then create two new assets: (1) The house with an original Basis of $180,000 and $18,000 of prior depreciation and (2) a Roof with an original Basis of $20,000 and prior depreciation of $2000.  Then delete the old asset.

Then 'sell' or whatever you need to do for the old roof.

If it is a depreciable asset, yes, start a new asset using the current year as the Place In Service date.

With that being said, since the Capitalization Regs came out, in my opinion,it is a good case that merely re-shingling a residential home is often actually a "repair" (merely re-shingling is not a "roof", which includes the joists, decking, etc.).

Agreed: we do not reduce basis of new roof, its completely depreciable.  Maybe I misspoke? (A) I need to reduce the basis of the original house by the calculated $4630 loss on its tear off.  Thus I need to reduce basis in Asset Entry & continue (?) over its original life beg. In ’13 (at this time Asset Entry doesn’t seem to allow partial write-downs on original basis.  Producer Price Index (PPI) calculations provide loss figure for old roof portion of original house.    Replace my 1st sentence with "Placed in svc 3/9/13, Bldg cost (net land) $59K, Historic Cost of roof $6057 (incl in $59K basis- per PPI calcs). [Rptd wrong basis house/land bc I have 3 rentals}

(B) The roof write-off from F4864, Casualty & Theft loss provides an ordinary write off $4630 on F4797, line 14 as an ordinary gain.  IMO the roof loss (of undepreciated basis) is a capital loss since the house is a capital asset.