Capital improvements - kitchen renovations, bathroom remodels, new HVAC systems, roof replacement, window upgrades - add to your basis and reduce your taxable gain. Maintenance and repairs (painting, fixing leaks, replacing broken fixtures) do not qualify. The distinction matters: a $150,000 gut renovation adds $150,000 to your basis, potentially saving $50,000+ in capital gains tax. Keep every contractor invoice and permit receipt.
From the seller playbook: Capital Gains Tax Planning for NYC Property Sales
This is general information, not legal, tax or accounting advice. Every situation is different. Talk to a licensed attorney, accountant or tax professional before you act.
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