entering capital improvements on Sale of Second home

[rw28]

I have sold our second vacation home and need to deduct the capital improvements made to the home since we purchased it.  Where are those capital improvements entered?

[DoninGA · Accepted solution]

Assuming you selected Second Home in the box for Type of Investment -

In the box for Total Amount Paid you should enter the purchase price plus the cost of any improvements to the property prior to the sale.

[rw28]

Thank you!  Is it that simple or will I have to itemize those capital improvements later in the deductions section?

[DoninGA · Accepted solution]

@rw28 Yes, it is that simple and you do not itemize the improvements made on a tax return.  However, you should keep all paperwork showing the costs of these improvements if the IRS ever questions the sale (highly unlikely)