How do you calculate the cost basis on the sale of a home?

Answer by  Kdm (180)

The first number that you will need is what you paid for the home. Then you add in sales tax, any capital improvements(roof, porch), any monies you paid to fix your home if there were damages. Then you subtract out any reimbursements for damage and any capital items removed.

Answer by  tamarawilhite (17883)

The cost basis of a home for capital gain purposes upon sale is the price at which it was purposed. The cost basis when a home has been inherited is the fair market value of the property at the time the estate was settled; this is typically hire than the original purchase price.