can i exclude capital improvements upon sale of a house that is not my primary residence

[rhodion]

There is a 500k$ exclusion to capital gains on our primary residence. Can we also exclude capital improvements? If so, is there a limit to the capital improvement exclusion? 

What about a house that is NOT our primary residence. I know there is no basic exclusion but can we exclude capital improvements?

[Critter-3]

Cost basis =  purchase price + cost to buy + cost to sell + improvements 

Sale price -  cost basis =  profit / loss 

[NCperson]

@rhodion 

you include the capital inprovments, because it reduces the gain.....

[rjs]

For either your primary residence or any other property, you don't "exclude" capital improvements. The cost of capital improvements is added to your basis. You use the basis, including the capital improvements, to calculate your gain. For your primary residence only, the exclusion is then applied to your gain.

[Carl]

That makes no sense to me. If you exclude capital improvements, that will increase your capital gain. Perhaps you mis-typed that and meant to say "IN"clude capital improvements?

[rhodion]

Several replies to my question have pointed out my incorrect usage of tax terms. Although I am not a tax expert, I am a scientist and so I should know better than to use imprecise language. Let me ask again with care:

1. Can I add the costs of capital improvements to my cost basis if the house was not our primary residence?

2. Is there a limit to the amount of capital improvement costs that I can add to the basis for either a primary or non-primary residence?

[Critter-3]

1. Can I add the costs of capital improvements to my cost basis if the house was not our primary residence?   Yes ... forever and always.

2. Is there a limit to the amount of capital improvement costs that I can add to the basis for either a primary or non-primary residence?  No limits ... just keep the records if you are audited. 

[DoninGA]

@rhodion 

1. Can I add the costs of capital improvements to my cost basis if the house was not our primary residence?

Yes you can.  As stated previously you can add the cost of improvements to the cost basis of a residence that is not your primary residence. 

2. Is there a limit to the amount of capital improvement costs that I can add to the basis for either a primary or non-primary residence?

No.   There is not a limit on the amount of improvements made to a non-primary residence.

[TomD8]

Be sure you understand the difference between a capital improvement and a repair.  You can add the cost of capital improvements to your cost basis; you cannot add the cost of repairs.

https://www.investopedia.com/terms/c/capitalimprovement.asp

[ScruffyCurmudgeon]

You are mixing  up terms inconsistently.

1. ONLY in the case of a house that qualifies as a personal residence, a married couple can "exclude" (reduce the taxable proceeds received) $500,000 [single person $250,000].  That only applies to a personal residence and not any other owned house, residence or other assets.  Such an exclusion is beneficial in that it reduces the capital gains that are taxable.
   
   
2. In the case of any asset, applicable improvements made after purchase are added to the cost basis and thus reduce the capital gains liability.  In the specific case of a house, and which house is not a personal residence, the same matter of increasing the cost basis applies for costs undertaken for improving or expanding the house.  Note that costs such as normal maintenance are not improvements.  Note also that the "exclusion" is not available for a house which is not a personal residence.
   

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Your last posting which seems to have not received a response:

can i exclude capital improvements upon sale of a house that is not my primary residence

There is a 500k$ exclusion to capital gains on our primary residence. Can we also exclude capital improvements? If so, is there a limit to the capital improvement exclusion? 

What about a house that is NOT our primary residence. I know there is no basic exclusion but can we exclude capital improvements?

[ScruffyCurmudgeon]

There is a 500k$ exclusion to capital gains on our primary residence. Can we also exclude capital improvements? If so, is there a limit to the capital improvement exclusion? 

What about a house that is NOT our primary residence. I know there is no basic exclusion but can we exclude capital improvements?