Purchased a fixer upper for $46,300 and put $50k in home improvements. Sold home for $122k in 2016. Never rented, vacant the entire time. Do I have to claim gains?

[rossdi525]

Do I have to claim as capital gains?  Can I report the improvements as a loss?  Can I write off the sale expenses?

[TaxGuyBill · Accepted solution]

Yes.

Improvements are added to Basis.

Yes.

So your Basis is about $96,300.  Before factoring in your sellling expenses, it looks like you have a capital gain of about $25,700.

[bcadigan2017]

Do I file this under investments as it was never rented out?

[TaxGuyBill]

Yes.