Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
valeriedcameron
New Member

I purchased a home on 12/30/16 but put improvements into before the purchase where do I put the expenses?

 
1 Best answer

Accepted Solutions
DDollar
Level 4

I purchased a home on 12/30/16 but put improvements into before the purchase where do I put the expenses?

The costs of those improvements are an increase in your cost basis. They are not reported on your tax return as they are not deductible expenses.  When you sell the house (whether your personal residence or a rental property) they will reduce your gain or increase your loss, as the case may be.

View solution in original post

1 Reply
DDollar
Level 4

I purchased a home on 12/30/16 but put improvements into before the purchase where do I put the expenses?

The costs of those improvements are an increase in your cost basis. They are not reported on your tax return as they are not deductible expenses.  When you sell the house (whether your personal residence or a rental property) they will reduce your gain or increase your loss, as the case may be.

Dynamic AdsDynamic Ads
Privacy Settings
v