The improvements you made are not deductible, but they are added to the cost basis of your house in order to calculate capital gain.
If the home was your primary residence, and you have lived in the residence for two of the past five years, you can exclude capital gain up to $500,000 for joint filers or $250,000 for single filers. If this is the case you don't have to
If you wish to enter the sale of your principal
residence in TurboTax to determine if there was a gain, please follow these
steps:
- Click
on Federal Taxes > Wages & Income
- Under
Less Common Income, click on the Start/Revisit box next to Sale
of Home (gain or loss).
- On
the screen Sale of Your Main Home click the Yes box.
- On
the Sold A Home screen, review the information you will need to
enter and click Continue.
- Continue
through the interview, entering the requested information.
- On
the screen, Tell Us About the Purchase of Your Home, you will need
to enter the Adjusted Cost Basis. For help in calculating the
adjusted cost basis, click on the EasyGuide box.
Once you've entered all the information,
TurboTax will calculate the gain for you.
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