Do remodeling costs increase the Cost Basis of our home when we sell it?

[JohnForJapan]

Do remodeling costs increase the Cost Basis of our home when we sell it?

I am a bit confused as I keep hearing about Capital Improvements but it seems like remodeling doesn't seem to count as an increase in the Cost Basis when computing your taxes for a main property sold in the previous year as it isn't adding much of anything to the original home. 

We had the walls and cabinets repainted in the interior of the house for the whole house.

We had the floors all ripped out and replaced

All new lighting fixtures in each room

New oven in the kitchen

New Furnace

What do you all think? Thanks

[JohnB5677]

Did you add the cost of doing those projects to the original cost of the property.

You can use the construction costs, however there is a sales exclusion for the sale of a primary residence.

The sale of your main home is different.

1. Start with Federal 
2. Click on Wages and Income 
3. Select Choose what I work on
4. Scroll down to Less Common Income
5. On Sale of Home (gain or loss),
6. Click the start or update button

If you sell your main home, and have a profit, 

• you may qualify to exclude up to $250,000 (if single) from your income, or 
• up to $500,000 if you file a joint return with your spouse.

IRS Sale of home exclusion