I sold a rental last year

[Lakehousebroker]

I sold a rental house last year.  I took it out of rental service in 2018.  Never rented in 2019.

It was in rough shape and I had to remodel I put about $85,000. into the project. Can I take that as a deduction to reduced my capital gains and if so where?

[Anonymous · Accepted solution]

the $85k would be added to basis thus reducing the gain.  

[Carl]

No, you can not deduct your property improvements. Property improvements are added to your cost basis, thus reducing the amount of taxable gain on your sale.