I sold my home. What can I deduct?

If you sold your home, you can deduct:

• Home improvement costs (permanent changes) as an adjustment to the basis of the home you sold (not the same as repairs and maintenance)
• Mortgage interest and real estate/property taxes charged at closing
• Selling expenses to reduce your gain on the sale side of the home

If you sold a home that you use as a rental or investment property at a loss, you might also be able to deduct it as a loss.