It actually made pretty big difference - almost $3k difference.
If I listed each improvement we did before selling as an asset (say, roof and then also appliances, etc.) and I put the sales price of each of those (improvement) assets as 0? Then the cost of those is a loss. But then I reported the entire sales prices of the house (excluding the land) and it's taxed at a lower rate due to capital gains I guess?
In other words, I put $7259 as cost of roof. I then noted I purchased it and I sold it. For sales price and sales expense of the roof I put $0 (technically, I didn't sell the roof off separately from the house, right?)
If I put $7259 as cost of roof, and then for sales price of roof if I put $7259 (and then reduces the sales price of the house itself by that much), it definitely increases my tax burden.
Which of course makes me nervous if I do it this way, ha.
