Painting entire exterior and interior of house prior to sale. Able to add to adjusted basis

[SabrinaD2]

Generally, painting the exterior and interior of your house prior to sale is considered a maintenance expense rather than an improvement. Maintenance expenses do not add to the adjusted basis of your property.

 

Key Points:

Maintenance vs. Improvement: The IRS distinguishes between repairs (maintenance) and improvements. Repairs maintain the property in its current condition, while improvements add value or extend the property's useful life

Adjusted Basis: Only capital improvements can be added to the adjusted basis of your property. Examples include adding a new room, installing a new roof, or upgrading the HVAC system

Exceptions:

• Part of a Larger Improvement: If painting is part of a larger improvement project, such as gutting and complete renovation of  a kitchen, the cost of painting can be included in the overall improvement cost