Have a Tax Question? Ask a Tax Expert
Adding repairs to the home would not necessarily increase the taxes you owe when you sell it. You would owe capital gains tax on any gain your have from the sale. If this is a rental property, your gain would be figured using the following formula.
Take your selling price, less your basis, less the cost of any selling expenses such as real estate commissions. You then must add back in any depreciation you have claimed over the years.
Your basis in the property would be the price you originally paid for the property plus the cost of any repairs that you made while you owned it. So you would increase your basis by the cost of any repairs that you make, which will help reduce your reportable gain.
If this was helpful please press the Accept button. It is the only way we receive any credit for helping with these questions.
Thank you learner