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 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.
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 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.