Capital Expenses estimate

[eliezer18]

I owned my home for 40 years. Is there a rule of thumb as to the approximate amount of reasonable capital expenses over 40 years. I do not have all receipts, and will be using Kohan Rule that allows estimation). 

[JohnB5677]

Capital expenses are significant improvements (Not Repairs) to the home.

• Renovating a kitchen, or adding a deck are examples.
• You can estimate the cost and include it in the basis.
• Consider the exemption below before you spend significant time on the estimates.

If you have a capital gain from the sale of your main home, you may qualify to exclude up to $250,000 of that gain from your income, or up to $500,000 of that gain if you file a joint return with your spouse.

Topic no. 701, Sale of your home

[eliezer18]

Thank you. Considering all that, is there some general guideline of reasonable expenses for 40 years? I am estimating, and do not want to overshoot. I am looking for a real dollar number, albeit very approximate. Appreciared.

[JohnB5677 · Accepted solution]

No, there is no way to just include 40 years of capital expenditures.  

• They will have to be individually listed and estimated.
• The task is uniquely yours.
• If you made significant improvements to the home you will have to have:
  • Date construction was completed
  • Description of what was done
  • Estimated cost of the project.

This does not have to be attached to the tax return.

However, you must be ready to provide it if the IRS asks for it.