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posted Apr 1, 2024 6:13:03 AM

Sold the house for 530,000 how do I calculate adjusted cost base? I spent approx 15k on renovations prior to selling the house I ended up with total 181,291.56

house was listed 541,000 , sold for 530k
after paying mortgage off and splitting due to separation I ended up with the number above. How do I calculate adjusted cost base?

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1 Replies
Intuit Alumni
Apr 1, 2024 6:45:41 AM

The Adjusted Cost Base (ACB) is the cost of property + any expenses to acquire it, such as commissions and legal fees. The ACB can also include capital expenditures to the property, like the Cost of additions and improvements to the property. Note: You cannot add current expenses like maintenance or repairs to the ACB.

“Disposition” refers to when you dispose of or get rid of a property. In most cases, the proceeds of disposition is the amount you received for the property. Even if you don’t have a capital gain or loss, you still have to report the proceeds of disposition every time you sell the capital property. 

Subtract the adjusted cost base and the selling expenses from the proceeds of disposition. A positive number indicates a gain, while a negative number indicates a loss. 

For more guidance, please see the following TurboTax articles;

Calculating Adjusted Cost Base.

Proceeds of Disposition.

How to Calculate Capital Gain or Loss.

Where do I report capital gains or losses in TurboTax Online?

How do I report the Sale of my Home(principal residence)?

 

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