topic Should I add the cost of correcting major structural defects to my cost basis for my home? in Deductions & credits

Should I add the cost of correcting major structural defects to my cost basis for my home?

docsdf — Sat, 01 Jun 2019 05:00:51 GMT

Yes, if you make improvements which increase your home’s...

Marketstar — Sat, 01 Jun 2019 05:00:51 GMT

Yes, if you make improvements which increase your home’s market value and/or extend its useful life, you can add to the cost basis of your home, which may reduce the capital gain when you sell your property.

In addition, you may be able to deduct the sales tax paid for building materials for a major improvement to the home if you itemize deductions and choose the sales tax deduction over state income taxes paid.

See Home Improvements And Your Taxes

Just wanted to be sure this is correct, as I have a simil...

gtoph — Sat, 01 Jun 2019 05:00:52 GMT

Just wanted to be sure this is correct, as I have a similar situation. We had around $61k worth of structural repairs done that insurance fully covered, so there was nothing to deduct during the life of the rental. Technically, this made the foundation better than new, so now that we sold it, are you saying I can add $61k to my basis to help with the tax on the sale last year?