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Thanks Mike.  I am saying the opposite.  My partner did not pay for any of the remodel expenses nor can she take the deduction for the expenses, but her cost basis increased as a result.  Does she have a means to exclude the remodel expenses from the cost basis even though the sale was split 50/50.

Example. 

Sale of house.  $3M

Expense of remodel 600k.

50/50 cost basis $1.5M

Can partner reduce cost basis by any of the 600k even though partner will no pay for and will not adjust cost basis by these expenses to remodel home?   Specifically in this section screenshot below.