Where in TT 2023 Delux enter cost of Home Improvements

Forum|Forum|2 years ago
February 26, 2024
2 replies
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Hello,
We sold a home in 2023 and now have pretty high Capital Gain amount (calculated by TT 2023).

We did many Home Improvement. But I can't find where to enter then in TT 2023 Delux.

I would appreciate someone pointing me to where to enter these expenses?

Also, if I enter these expenses, do I need to do an Itemized Deductions (not Standard Deductions)?

Thank you.

Best answer by Vanessa A

The home improvements that you did, would be added to the cost basis of the home. They would not be itemized, they would just be added in with the price you paid for your home whenever you bought it.

The improvements that you can add to the cost basis would be things that extend the useful life of your home or change the home in some way, like an addition or a new deck, a full kitchen remodel. Doing something like painting the walls would not add to the cost basis of your home. Expenses for standard maintenance or repairs would not be deductible at all for your home expenses.

To enter the adjusted cost basis, you will go to Sale of Home under Less Common Income, enter the selling price, date sold and selling expenses (realtor fees, etc) and then click next. Then you will enter the date you bought the property and the adjusted cost basis which will include any major home improvements you did while owning the home.

Home Improvements and your taxes

Dmitry 12Author

Odd that nobody found this question reasonable and provided an answer.

Vanessa AAnswer

The home improvements that you did, would be added to the cost basis of the home. They would not be itemized, they would just be added in with the price you paid for your home whenever you bought it.

Home Improvements and your taxes

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Dmitry 12Author

Hello Vanessa,

Thank you very much for the detailed reply.

I understand your answer but it is strange (at least to me) that IRS won't know how much I paid for the home and how much are the Capital Improvements. Because I would simply (if I understand your suggestion correctly) enter the date when the home was purchased and the Adjusted (cost basis) amount.

I suppose someone from IRS will check the number and decide (if necessary in their view) to audit us.
Again, thank you.