Rental Home Renovation

Forum|Forum|2 years ago
March 30, 2024
2 replies
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I Renovated a Rental Home (I've had for 10 yrs.) in February 2023. Then sold it in June 2023. Now I'm unsure where to list/claim the $43k of remodeling costs?? I really need to raise the Basis if possible..? The Cap Gains are high!

Thank you for any help,

6reg

Not A Product Question

DawnC

Employee

Enter the adjusted cost basis when you report the sale. You can add the amounts of home improvements to the basis when you enter the amount. Cost basis is the original purchase cost of an asset (such as stocks, bonds, or property), plus any adjustments that result from transactions over the period you own the asset. Examples of adjustments would be an increase in valuation due to a property improvement or a decrease in valuation due to unreimbursed storm damage to the property. Keep detailed records of your costs.

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Mike9241

Renovations that enhance the property’s value should be included in the cost basis