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rainey1178
New Member

Can I write off home improvements to primary residence sold in 2016?

Can I write off home improvements to my primary residence that I sold in 2016?
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Accepted Solutions
DS30
New Member

Can I write off home improvements to primary residence sold in 2016?

No. Instead the cost of home improvements increases the basis in your home to lower your overall gain (or increase a loss) on the sale. Unfortunately, this will not be of any benefit, if you are either taking the home gain exclusion or have a loss on the sale of your home. (The IRS does not allow the recognition of a capital loss on the sale of a personal use property.)

Please note -

You do not need to enter or report the sale of your primary residence if:

  • You never used your primary residence as a rental or took home office deduction
  • You have a loss on the sale of your home (Personal capital losses are not reported on your tax return)
  • You did not receive a Form 1099-S and
  • You meet the home gain exclusion (see below)

You can take the gain exclusion as long as you considered the home your "primary residence" for 2 of the last 5 years. If you have a capital gain from the sale of your main home, you may qualify to exclude up to $250,000 of that gain from your income. You may qualify to exclude up to $500,000 of that gain if you file a joint return with your spouse. See  Sale of Your Home for more information on the exclusion.


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1 Reply
DS30
New Member

Can I write off home improvements to primary residence sold in 2016?

No. Instead the cost of home improvements increases the basis in your home to lower your overall gain (or increase a loss) on the sale. Unfortunately, this will not be of any benefit, if you are either taking the home gain exclusion or have a loss on the sale of your home. (The IRS does not allow the recognition of a capital loss on the sale of a personal use property.)

Please note -

You do not need to enter or report the sale of your primary residence if:

  • You never used your primary residence as a rental or took home office deduction
  • You have a loss on the sale of your home (Personal capital losses are not reported on your tax return)
  • You did not receive a Form 1099-S and
  • You meet the home gain exclusion (see below)

You can take the gain exclusion as long as you considered the home your "primary residence" for 2 of the last 5 years. If you have a capital gain from the sale of your main home, you may qualify to exclude up to $250,000 of that gain from your income. You may qualify to exclude up to $500,000 of that gain if you file a joint return with your spouse. See  Sale of Your Home for more information on the exclusion.


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