Hi mxu1,
Thank you for this question.
You can generally include the full amount spent on preparing your house for sale in 2024 as part of your cost of selling when the home is sold. Importantly, the expenses have to be directly related to making the house sellable.
Directly related expenses could be any of the following:
1. Selling cost which includes selling commissions, legal fees, and advertising fees
2. Property Taxes which include those taxes paid upto the point of sale
3. Mortgage Interest for the portion of the year that you owned the home
4. Home improvements and repairs to increase market value before the sale
5. Closing cost such as title and escrow fees
These are but a few of the expenses that could be included in the $40,000 that you mentioned.
Good luck to you!
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