As part of a sale this year of our second home (which we had inherited in 2008) we agreed to put in a new septic system to replace the old one which was badly in need of repair. This was agreed to in writing in the Real Estate Condition Report. The new septic system cost (in round numbers) $10,000. Can we deduct the cost of this repair from our taxes? If so, is this considered an adjustment to the cost basis? Or is it a sales expense not already listed in the Seller's Closing Statement which details the various other prorations and adjustments? Thank you.
We are using TurboTax Premier.
