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Anne, Master Tax Preparer
Category: Tax
Satisfied Customers: 2439
Experience:  Enrolled Agent with 25 Years Experience specializing Individual and Small Businesses
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I bought an investment property in 2004 and sold it last year

Customer Question

I bought an investment property in 2004 and sold it last year for close to the same price, but have invested close to $100,000 in improvements and entitlement expenses. Can I add all of those costs into my cost-basis?
Submitted: 1 year ago.
Category: Tax
Expert:  Anne replied 1 year ago.
HiI'm Anne. I've been preparing taxes for 28 years and I'll be happy to help you. Yes, you definitely should add the cost of the actual improvements (except for the value of any labor that you, yourself provided) I'm not as familiar as with the term "entitlement expenses", but I think this has to do with gaining easements, etc. (The difference in terminology co(https://www.irs.gould just be a product of where we live. Please see page 5 of Pub 551 ( If this answer has been helpful to you, please take the moment to rate positive by clicking on the stars.It is ONLY though positive ratings that we are compensated for our time and knowledge. Thank you for choosing justanswer.