selling home

[Fredstew]

I am a Florida resident. My wife is selling her primary residence in New York. As a consequence, we can not use the $500,000 exclusion, but only $250,000 on her NY State return. She paid $20,000 in 1972, and we have sold 2 weeks ago for $650,000. My question is what expenses may we use to offset the gain? for example .... an addition? potential falling trees removed? patio build? other expenses besides basic Maintainance?

[rferreira 1]

Congratulations to your wife!  Since she purchased the house in 1972, did she make any capital improvements to the home such as new roof, windows, heating, A/C?  These expenses will add to her basis and reduce her gain.  You already mentioned improvements to help sell the house, but she will incur closing costs as well.  

[Fredstew]

Thanks, Just wanted to make sure all our "upgrades" were indeed added to the cost basis. Over the many years we have significant upgrades, but I was unsure which ones added to basis. painting? cost of moving to new home.... any other that are typical or perhaps might you name a few that are specifically NOT approved by the IRS to add to the cost basis.  Thanks again 

[rferreira 1]

Moving costs are not deductible.  However, touch up expenses to prepare the property for sale are: painting, yard work, etc,