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Sold inherited land in 2016 for 38,000. To sell the land I had to make 10,000 of sewer improvements. My stepped up inherited basis was 25,000. Can I adjust the basis

I my capital gain 10,000 or 3,000?
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Sold inherited land in 2016 for 38,000. To sell the land I had to make 10,000 of sewer improvements. My stepped up inherited basis was 25,000. Can I adjust the basis

If your basis when inherited was $25K and then you made $10K in improvements, your adjusted basis would now be $35K.

So, yes, you can increase the stepped up basis by the cost of the improvements.

Also be sure to claim any selling expenses (commissions, closing costs) on the Sale. 

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Sold inherited land in 2016 for 38,000. To sell the land I had to make 10,000 of sewer improvements. My stepped up inherited basis was 25,000. Can I adjust the basis

If your basis when inherited was $25K and then you made $10K in improvements, your adjusted basis would now be $35K.

So, yes, you can increase the stepped up basis by the cost of the improvements.

Also be sure to claim any selling expenses (commissions, closing costs) on the Sale. 

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