My wife and I bought my aunt’s home in our personal names in 2016 for $23,678. At that time its appraised value was $66,500. It was her and my grandmother’s residence and eviction was imminent without our intervention. We allowed them to live there rent free until my grandmothers passing in January 2020. We did rent a small apartment located on the property from mid 2016 to July 2019. That rental was reported on previous years’ returns. For liability reasons in January 2019 we deeded the entire property into an LLC my wife and I created and manage. It was valued at $68,000 at that time. I say all that to hopefully establish some cost basis. In 2020 we did renovations totaling $30,035 due to the poor condition of the home. We then sold the property from the LLC in August 2020 for $145,000. My question is what our cost is for taxable gain calculation?
