Where do I enter the money that I spent fixing up the home that I sold?

Forum|Forum|6 years ago
July 6, 2020
2 replies
28 views

I paid 26k for home and spent 69k renovating it. Where do i show the. 69k on my return?

TurboTax Premier Online

Best answer by SusanY1

You will add this to the cost basis of the home. When you are asked what the cost basis of the home is, add the $69,000 to your other costs (such as the original purchase price). This will, ultimately, reduce the amount of your gain on the sale.

SusanY1Answer

Level 15

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Carl

Level 11

Assuming you did not rent out this property or use it in any other way for the production of income, simply add your property improvement costs to the cost basis (what you paid) for the property. So the 26K you paid for the property plus the 69K you spent on property improvements makes your cost basis $95K. If you sell the home for more than that, then any amount over $95K is taxable income to you.