Legitimate adjustments to Second Home basis?

Forum|Forum|6 years ago
February 18, 2020
1 reply
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I purchased a second home (purely as vacation home, no rental) 10 years ago and sold it last year for a $80,000 profit. I know I can deduct my closing costs from this profit, but can I add any of the following to the cost basis (thus lowering the profit subject to capital gains):

- New carpeting and hardwood floors

- New air conditioner (upgraded)

- Replaced furnace and hot water heater (broken)

- Sold fully furnished (can cost of furniture be added to cost basis?)

Thanks for any guidance you can give me

MinhT1

Level 15

You could add these items to your cost basis of your home, except for the replacement of the broken furnace and water heater, which would count as repairs.

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