The adjusted cost basis of your home is the original price you paid for it, plus the cost of any capital improvements that you've made since purchase. Financing/refinancing is not part of the calculation.
A capital improvement is any work done that adds to the value of your home, increases its useful life, or adapts it to new uses. Common examples include room additions, new bathrooms, decks, fencing, landscaping, wiring upgrades, walkways, driveway, kitchen upgrades, plumbing upgrades, new roofs.
**Answers are correct to the best of my ability but do not constitute tax or legal advice.
