I assume that, in general, the cost of home improvements can be added to the cost basis of the house. But I'm also thinking that a lot of home expenses are repairs that cannot be added.We're in the process of completely remodelling the kitchen: new counter, new sink, etc. We also plan to have several large trees removed from the yard and then have completely new landscaping. And (in the more distant future) we may add on a "sun room". I believe that the cost for the sun room gets added on to the basis, but what about the other things? What about a new roof or new siding?Are there some general principles that I should be applying here? Is there an IRS publication I should consult?TIA!
IRS Pub 523 will tell you all you want to know and more. Note that things done as part of an 'improvement project' can be added to the basis even though they would be considered 'repairs' if done separately (eg, painting). Generally, if you add to the value (like a sun porch) or extend the life of the building (like a new roof), you can add the cost to the basis.
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