Maybe to item 1 and yes to item 2. The fine probably cannot be added to basis; however, the lawn work you did seems to fall within the category of an improvement, and therefore, can be added to the basis of your home.
Item 2 - appears to be an improvement. While the existing wiring may have been sufficient and compliant with local codes, it appears your upgrade would be an improvement and that cost can be added to your basis.
The IRS provides the following regarding what you cannot include in your basis.
Examples of improvements you CAN’T include in your basis.
You can’t include:
Any costs of repairs or maintenance that are necessary to keep your home in good condition but don’t add to its value or prolong its life. Examples include painting (interior or exterior), fixing leaks, filling holes or cracks, or replacing broken hardware.
Any costs of any improvements that are no longer part of your home (for example, wall-to-wall carpeting that you installed but later replaced).
Any costs of any improvements with a life expectancy, when installed, of less than 1 year.
You can review more information about this subject by clicking on the link below. To find the section on Improvements, review the subject headings in the left margin, or select Ctrl F on a pc or Command F on a Mac and enter improvements in the search box.
Selling Your Home
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