No, you got it backwards. You don't subtract from your selling price. You add to your original purchase price those things that quality - such as property improvements. Extending the road to reach your property is a property improvement. You don't deduct anything. Property improvements are *added* to your cost basis, and thusly increases your cost basis. That decreases the difference between your cost and selling price if you sell at a gain, and increase the difference if you sell at a loss.
Property improvements
are expenses you incur that add value to the property. Property
improvements can be done at any time after your initial purchase of the
property. It does not matter if it was your residence or a rental at the time
of the improvement. It still adds value to the property.
To be classified as a
property improvement, two criteria must be met:
1) The improvement
must become "a material part of" the property. For example,
remodeling the bathroom, new cabinets or appliances in the kitchen. New carpet.
Replacing that old Central Air unit. Adding a driveway. Extending access roads.
2) The improvement
must add "real" value to the property. In other words, when the property is appraised by a qualified,
certified, licensed property appraiser, he will appraise it at a higher value,
than he would have without the improvements.
