Sale of home with partial ownership

[Brett23]

I purchased a mobile home for my daughter while she attended college.  The mobile home park required it to be "owner occupied" so she was put on the deed as a 50% owner.  We sold it for a good profit after she graduated.  I put a lot of money (and sweat) into improvements, but we still had a net gain. 
Since she lived in it, she gets to avoid paying taxes on her gains.  If we were 50% owners, can I deduct the expenses for upgrades alone to lower my 50% of the capital gains?   I'm guessing I cannot deduct any of my labor?

[AnnetteB6]

Since you paid for the cost of the improvements, you can add that cost to your 50% of the basis of the property.  This will help to reduce your gain from selling your 50%.  

Your guess is correct, you cannot include any cost for the labor that you put into the improvements.  

[Brett23]

Just to clarify, can I deduct from MY half of the gain?
Example: If the cost was $20, and we sold it for $100.  There was a gain of $80.  If we split that gain evenly, we each made $40.    But if I paid $30 for improvements, our shared gain would only be $50 and I would still owe $25 in capital gains taxes. 
Is it OK, to have our shared gain be the $80, which is $40 each and then I subtract the $30 in improvements I paid for so that her gain remains $40 and my gain is reduced to $10?  She is exempt because she lived there.  I'm not, but I paid for the improvements.

[AnnetteB6]

That's the general idea.  The math is a little different, but the result is the same.

Using your numbers, here is what your portion would look like:

Your share of the cost (original basis of the property)  = $10

Add the cost of improvements that you paid, $30 for improvements + $10 for your share of the cost = $40.  This is your adjusted basis in your share of the property.  

Property sold for $100, your share is $50.  

Your gain is your share of the proceeds minus your adjusted cost basis, or $50 - $40 = $10.

@Brett23