House cost basis for (re-) seeding field

[countryhome]

Seven years ago, we built a home on 5 acres of old farmland, and have been trying to get the weed under control ever since. We've paid somebody to fertilize and plant field grass on 3 separate occasions, but -- due to the fickleness of mother nature -- have so far been unable to get the field established.

I know that landscaping and material improvements that increase the value of a property generally generally contribute to the cost basis for that property. But what are the limits of that? Would all of my expenses thus far (ground prep + seeing/fertilizing in 3 separate years) qualify? What if the the field never actually gets established, or only does so partially?

[Opus 17]

Botanically, speaking, you may have more luck if you use an appropriate prairie grass mix for your field, whatever would be appropriate to the soil type and climate, and not just turf grass.  Turf grass needs a lot of maintenance but native plants should take much better.

I know that if you claim an improvement, it must be part of the property at the time of sale to count as an adjustment.  For example, if you bought the home in 2000, and replaced the furnace in 2001 and again in 2020, only the 2020 replacement counts, you lose the adjustment from the 2001 furnace that was taken out.

Using that logic, I would say that you can include your costs to establish proper ground cover, even if that takes several years.  However, if you decided in 10 years to plow it all under and plant corn, you would not be able to count the earlier work as an improvement for the cost basis. 

[Mike9241]

it's really your judgment. Those expenses that added value to the property would be included in the basis. those that did not would not.  Like mowing the lawn they would be a personal expense. 

[phippsburger]

Add the total cost to your basis.  The worst that can happen is the IRS will disallow later.  If you sell the house and buy another for more than your sale price it will be a moot point because there will be no tax owed.  If you intent to stay in this house until downsizing in retirement you can take the one-time capital gain exclusion.