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Ask Millionacres: What is My Cost Basis?

[Updated: May 20, 2021 ] Sep 19, 2020 by Matt Frankel, CFP
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I have a question on an investment property. The property was purchased for 74,000 and put in service in 1986. Later in 2011, it was refinanced with cash out of $200,000. The property is still in service as of today. Would the cost basis on the property be $74,000 plus $200,000 (current mortgage amount) and depreciated amount over the years? I'm considering selling this property this year.