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Can I enter purchase price of land as "original cost" and then the cost of the house as "total improvement" to add up to total cost basis for sale of second home?

 
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JulieR
Expert Alumni

Can I enter purchase price of land as "original cost" and then the cost of the house as "total improvement" to add up to total cost basis for sale of second home?

When entering Original Cost, enter the sum of the land cost plus the cost of the house.  

Total Improvements refers to things such as: 

- Replace the entire roof of your vacation home.

 - Install a new transmission in an antique car.

 - Remodel the kitchen of the condominium that your child lives in while at college.


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