Deductions for home sale

[Luckydog3432]

I sold my primary residence in 2024 for 800,000.  I realize I get a 500,000 deduction for married.  Why can’t I deduct what I originally paid for the house, improvements such as roof, heating, pool, etc.?

[Vanessa A]

Are you entering it in the correct place?  You can enter the purchase price and capital improvements in the cost basis amount. This will allow you to deduct your house, roof, pool, etc. 

To enter the Sale of a Home select the following:

1. Federal
2. Income
3. Sale of Home under Less Common Income