Carl
Level 15

Investors & landlords

Also, I spent quite a bit in getting the house ready to sell, counter tops, appliances, painting, does it make a difference whether I put those expenses under maintenance/repair or improvements toward the asset?

Assuming this is/was renter property and you did convert it to personal use after the last renter moved out, yes it does. Anything you declare as an expense does not and can not be added to the cost basis. Generally, expenses incurred after that last renter moved out are flat out not deductible anywhere on the tax return. Anything declared as a property improvement does add to the cost basis of the property and reduces your taxable gain on the sale.

Now painting is not a property improvement, because from the perspective of a licensed property appraiser, painting does not change the value. One color is no more or less value than any other color. However, when you do a property improvement that includes painting, then you include the cost of that painting as a part of the property improvement, and not an expense separate from it.

Basically, everything you listed is a property improvement, possibly with the exception of painting unless said painting was done as "a part of" the property improvement.