Generally, painting the exterior and interior of your house prior to sale is considered a maintenance expense rather than an improvement. Maintenance expenses do not add to the adjusted basis of your property.
Maintenance vs. Improvement: The IRS distinguishes between repairs (maintenance) and improvements. Repairs maintain the property in its current condition, while improvements add value or extend the property's useful life
Adjusted Basis: Only capital improvements can be added to the adjusted basis of your property. Examples include adding a new room, installing a new roof, or upgrading the HVAC system
Exceptions:
- Part of a Larger Improvement: If painting is part of a larger improvement project, such as gutting and complete renovation of a kitchen, the cost of painting can be included in the overall improvement cost
