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Deductions & credits
If you paid 200K for your home, for example, and add 50K of Improvements to it over the years (such as a pool), the amount of the Improvements is added to your home's Cost Basis when you sell your home. So your home's Cost Basis is now 250K.
So it's good to keep track of the cost of any improvements you make to your home. If you decide later to rent it, the Cost Basis for depreciation will be your original cost, plus improvements.
Here's more info on Cost Basis.
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March 17, 2023
4:12 PM