MarilynG
Expert Alumni

Get your taxes done using TurboTax

If you did extensive remodeling (like the kitchen) definitely add that to the Cost Basis of the home, as it's a permanent improvement. 

 

Things like furniture, decorating, linens, etc. you could include as 'Sales Expenses.'  Since the buyer purchased all these items with the home, theoretically you could add them to the Cost Basis; however, normally only 'improvements' are added. 

 

In the end, both Cost Basis and Sales Expenses are subtracted from the Sales Price to determine Gain/Loss, so the bottom line will be the same wherever you add them. 

 

Just don't deduct 'normal maintenance/repairs' as that is expected to be done anyway and is not deductible for a personal property (that is not a rental). 

 

Click this link for more info on Additions to Cost Basis on Home Sale. 

 

 

 

 

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