Sale and purchase of primary home.

[Tucbeth]

I received a response regarding paying capital gains tax on the sale and purchase of a home within nine months. My next question would be are there deductions for improvements that I made to the home that I sold to reduce the capital gains tax?  Also does the cost basis come into consideration or is it a completely different aspect of paying taxes?

[Sandyln]

Welcome to our Community.

The capital gains will apply to the sale of home. You can use improvements to decrease the capital gains by adding the improvements to the cost basis. The original cost of the home is the cost basis. If you purchased the home for 100,000, had 50,000 in improvements your cost basis would be 150,000. 

https://turbotax.intuit.com/tax-tips/home-ownership/video-tax-deductions-when-buying-or-selling-a-ho...

https://ttlc.intuit.com/community/tax-credits-deductions/discussion/report-sale-of-house/00/93052

https://turbotax.intuit.com/tax-tips/investments-and-taxes/5-things-you-should-know-about-capital-ga...