Capital improvements are added to the basis of the property. When you sell the asset, your cost basis gets subtracted from the money you collect from the sale. Instead of paying tax on the full amount, you only get taxed on the profit (the selling price minus the cost basis).
Is the money I made from a home sale taxable?
Capital gains, losses, and 1099-B forms are all entered in the same place, Investment Sales. Choose your situation below for instructions.
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