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When claiming capital gains tax on the sale of a property, how recently do improvements have to be made in order to qualify as deductions?

I have to claim capital gains for this house because I claimed the 2-year primary residence capital gains exemption last year. Improvements on this house were made about 2 and a half years ago. Can I still deduct the improvements (did a full remodel) from the capital gains that I will have to claim?
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Employee Tax Expert

When claiming capital gains tax on the sale of a property, how recently do improvements have to be made in order to qualify as deductions?

Improvements made on a property are always added to the cost basis of the property, no matter when they were paid for during your ownership of the property. Adding these improvements to your cost basis will reduce any capital gains you may have on the sale of the property.

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Employee Tax Expert

When claiming capital gains tax on the sale of a property, how recently do improvements have to be made in order to qualify as deductions?

Improvements made on a property are always added to the cost basis of the property, no matter when they were paid for during your ownership of the property. Adding these improvements to your cost basis will reduce any capital gains you may have on the sale of the property.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

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