Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Feb 25, 2025 6:41:04 AM

Can a one-time paid-in-full membership in a community dock be considered a capital improvement when selling home?

0 5 1034
5 Replies
Expert Alumni
Feb 25, 2025 6:52:37 AM

No. It's not a cost that would be considered a capital improvement.  Capital improvements are attached to the structure or land such as a paved driveway or a shed or extend the life of the home.

 

This is not part of the home and the payment for membership is optional. Everyone in the community has the opportunity to use it by paying for a membership or community members do not have to pay or use the dock.

New Member
Feb 25, 2025 7:02:31 AM

Thank you for the clarification.

New Member
Feb 25, 2025 7:04:54 AM

One more question. The membership gets transferred with the home, does that make a difference?

Expert Alumni
Feb 25, 2025 7:48:00 AM

No.  As DianneW777 stated in her answer, a membership such as this would not be considered a capital improvement (unlike adding a dock, for example) when calculating your cost basis.  

 

For more information: IRS Pub. 523 Selling Your Home (pgs. 9-10)

 

New Member
Feb 25, 2025 8:16:03 AM

ok, thanks!