Capital Improvements on sale of inherited second home

[user17692866962]

I inherited a home in 2024 and pretty much had to totally remodel it to make it marketable in 2025.  It was just my second home and was never used as an investment property.  How/where do I account for the capital improvements?

[M-MTax · Accepted solution]

Add the cost of the improvements to your basis (inherited generally would be FMV on the date of death) and enter that figure into the program.