MarilynG1
Expert Alumni

Deductions & credits

Expenses for making improvements to your second home prior to sale can be added to the Cost Basis of the home you are selling, which reduces your Capital Gain. Minor expenses can be considered 'Selling Expenses', which also reduce any gain on the sale of your 'investment property'. 

 

If you lived in the house for two of the last five years, any gain could be excluded, but you could not deduct expenses. 

 

If the home had previously been a Rental Property, then travel expenses to the home would be deductible, as this was taxable income-producing business property.

 

However, IRS Publication 523 does not specifically include cost of travel to fix up an investment property in another location as deductible.  

 

Click here for info from IRS Pub. 523

 

 

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