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phlangley
New Member

Where do I enter the money that I spent fixing up the home that I sold?

I paid 26k for home and spent 69k renovating it. Where do i show the. 69k on my return?
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Accepted Solutions
SusanY1
Employee Tax Expert

Where do I enter the money that I spent fixing up the home that I sold?

You will add this to the cost basis of the home.  When you are asked what the cost basis of the home is, add the $69,000 to your other costs (such as the original purchase price).  This will, ultimately, reduce the amount of your gain on the sale. 

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2 Replies
SusanY1
Employee Tax Expert

Where do I enter the money that I spent fixing up the home that I sold?

You will add this to the cost basis of the home.  When you are asked what the cost basis of the home is, add the $69,000 to your other costs (such as the original purchase price).  This will, ultimately, reduce the amount of your gain on the sale. 

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

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Carl
Level 15

Where do I enter the money that I spent fixing up the home that I sold?

Assuming you did not rent out this property or use it in any other way for the production of income, simply add your property improvement costs to the cost basis (what you paid) for the property. So the 26K you paid for the property plus the 69K you spent on property improvements makes your cost basis $95K. If you sell the home for more than that, then any amount over $95K is taxable income to you.

 

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