Yes. Do your home work as to what you can add in to increase basis. Normal repairs don't count but capital improvements do. See this IRS publication 523, starting at the bottom of page 8, for specific examples of what does and does not count for improvements.
If you're saying the gain is now $47k instead of $150k, then yes, you'd owe capital gains on the $47k. That will be a far lighter tax bill than on $150k.
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