Sale of second home in 2017

[jbeth]

We sold in 2017 a house that was acquired via quit claim deed in 2007.  Our basis on the home was $36,500.00 in 2007.  What items can be included to reduce the capital gain on the sale? Can we offset the expense of a new roof, HVAC system as well as real estate commissions and closing attorney fees and increase our cost basis?   

[CathiM · Accepted solution]

Yes, you can add the cost of the new roof, HVAC system and selling costs to the original basis of $35,500. See screen shot below from IRS Publication 551.

Here is how to enter it in TurboTax:

https://ttlc.intuit.com/replies/4241480