In Wages and Income on TurboTax Premier, go to Less Common Income (you'll see the reference to sale of home here). Click on Start for "Sale of Home (gain or loss) ".
Continue through the dialogue for the sale of your home. Eventually, you will come to a screen with the title: "Tell Us About the Purchase of Your Home". On this screen, you enter the original purchase price and "Adjusted Cost Basis". The adjusted cost basis is where you enter capital improvements (click on the "Cost Basis" link to see more information).
