Anonymous
Not applicable

Investors & landlords

the reason Critter#2 is asking is because if it was rental,business property they should have been depreciated.  if not  post back because the IRS will insist that you reduce basis by the depreciation you should have taken on renovations.



on the other hand if you inherited the  house, a flip or your personal residence (and no home office deductions)   then they would either be part of basis or selling costs.  it wouldn't really matter  because either would reduce gain