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jodee
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Sold my inherited property can I deduct improvements paid to get ready to sell?

Do I add it to my sales expenses?
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1 Reply

Sold my inherited property can I deduct improvements paid to get ready to sell?

You have to distinguish between a capital improvement and repairs. Repairs are not deductible but the cost of a capital improvement is added to your cost basis. 
The IRS defines a capital improvement as something that makes a permanent structural change or restores some aspect of a property that will either enhance the property's overall value, increase its useful life, or adapt it to new uses. To qualify as capital improvements, such alterations must have a life expectancy of more than one year when the owner makes them. I assume this wasn’t a rental property. 

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