Did you add the cost of doing those projects to the original cost of the property.
You can use the construction costs, however there is a sales exclusion for the sale of a primary residence.
The sale of your main home is different.
- Start with Federal
- Click on Wages and Income
- Select Choose what I work on
- Scroll down to Less Common Income
- On Sale of Home (gain or loss),
- Click the start or update button
If you sell your main home, and have a profit,
- you may qualify to exclude up to $250,000 (if single) from your income, or
- up to $500,000 if you file a joint return with your spouse.
IRS Sale of home exclusion
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