Can I add painting costs prior to sale of house to my cost basis? (Seen answers all over the place.)

[lizhanglao]

I sold my house in 2021. Just prior to putting the house on the market, we painted the inside of the house to increase the house's value/marketability. Can these painting costs be added to cost basis of the house to help reduce capital gains exposure? 

I've seen answers all over the place--(1) painting is a repair (not an improvement), and thus can never be counted as part of cost basis (unless part of a restoration/remodeling project); (2) painting just prior to sale can count if within 90 days of the sale's closing (as can other house repairs within 90 days of sale's closing); or (3) painting just prior to selling is a selling expense and is thus directly associated with selling your home. 

Anyone know the answer to this? Thank you. 

[KrisD15]

Please be aware that the answer MAY differ depending on whether the house was used as a rental. 

If this was your personal residence, painting would be considered maintenance and not added to the basis. 

Since the cost was not essential to selling (you were not REQUIRED to paint the home, which is different than being REQUIRED to pay selling commission) it is not added to the basis nor added to selling costs. 

The only exception is if painting was part of an improvement, in which case the painting portion of the improvement needn't be separated. For example, if the kitchen was remodeled, you add the entire cost of that improvement to the basis. You do not need to separate the cost of cabinets, appliances, from the painting labor. 

Link

[lizhanglao]

Thank you! Yes, it is for personal residence. I also see these links that give opposite advice. What do you think of them? Are they just wrong? 

• https://www.realtor.com/advice/sell/not-valid-slug-5/ 
• https://www.upnest.com/1/post/tax-deductible-when-selling-house 
• https://ttlc.intuit.com/community/tax-credits-deductions/discussion/i-sold-my-home-last-year-before-... 

Also, I understand staging costs are a legitimate selling expense, but those aren't necessarily "required" to sell a house, so do all selling expenses need to be required?  

[JohnB5677]

I tend to agree with @KrisD15. I do not see a source for the other articles, but I will attach a copy of the IRS publication.

See pages 8 & 9  Publication Selling Your Home

Page 9  "Examples of improvements you CAN’T include in your basis.

You can’t include:

• Any costs of repairs or maintenance that are necessary to keep your home in good condition but don’t add to its value or prolong its life.
• Examples include
  • painting (interior or exterior),
  • fixing leaks,
  • filling holes or cracks, or
  • replacing broken hardware.