Capital improvements(enhance a property's value or extend its useful life) can be added to the cost basis of any asset, including a second home . When you report the sale of your second home you can add the cost of improvements made to the amount you paid for the property.
- Open or continue your return in TurboTax.
- In the search box, search for sale second home and select the Jump to link in the search results.
- Answer Yes on the Did you sell any stocks, mutual funds, bonds, or other investments in 2024? screen. If you land on the Here's the info we have for these investment sales screen, select Add Investments
- On the screen Let's import your tax info Skip import or select Enter a different way
- On the following screen, select Other.
- Continue and enter the name of the person or financial institution that brokered this sale
- Select Second Home for Investment Type and enter all sale info.
- Add improvements to the amount you paid.
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