I dont understand about adjusted cost basis?

[megspurcell]

We bought a house in 2013 and sold it in 2016.

[Lilly Peck]

The adjusted cost basis of your home is what you paid for the house plus any capital improvements you made to the house during the three years you owned it. Capital improvements include that which would increase the value of your home such as a new roof or redoing your bathroom. Capital improvements do not include general repairs and maintenance such as painting or fixing a leaky pipe.