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bobking13
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Can I deduct expenses I paid for improvements on a home that I sold. I have capitol gains

Are the improvements deductible from the capitol gains that I made when I sold the house. A second home.
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2 Replies

Can I deduct expenses I paid for improvements on a home that I sold. I have capitol gains

The cost of improvements made in order to add value to your second home is added to your cost basis which decreases your capital gain when you sell. 

Can I deduct expenses I paid for improvements on a home that I sold. I have capitol gains

See publication 523 for a discussion of which costs do and don't adjust your basis.  Most importantly, there is a difference between improvements (which do adjust basis) and repairs and maintenance (which do not).

https://www.irs.gov/forms-pubs/about-publication-523

 

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