Hi Samirsalfity!
Thank you for this question. There is a resounding 'Yes' to your question and here's why.
You may deduct the cost of capital improvements to your house from the total profits when you sell it. Capital improvements are those that add value to the property, prolong its useful life, or adapt it to new uses.
Examples include kitchen remodeling, HVAC upgrades, and adding energy-efficient features.
These improvements increase your cost basis in the property, which is the original purchase price plus the cost of improvements. By increasing your cost basis, you effectively reduce the capital gain, which is the difference between the sale price and your adjusted cost basis.
However, be advised that some cosmetic enhancements, personal use amenities, and repairs made within one year of selling are not deductible. It's always a good idea to keep detailed records of all improvements
...just in case of audit.
Good luck to you!
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