Thursday, February 25, 2010

Can you add carpeting and paint to your cost basis when selling a home?

I know typically you cannot because they are considered repairs and not improvements but the realtor said you can if you do it to sell your home. I do not trust him help me out.Can you add carpeting and paint to your cost basis when selling a home?
I don't think you can add them to the cost basis, but the cost basis can sure be lowered if a house being sold is in need of new carpeting and a good paint job.Can you add carpeting and paint to your cost basis when selling a home?
there used to be a 90 day rule (or similar period) for such things. I assume it is still there.





it only matters now if the sale will generate taxable capital gains. see the rules for that in instructions to Schedule D.
Carpeting yes.


Paint no.





IRS publication 523.
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