qbteachmt
Level 15

"how can I come up with a dollar value for capital improvements for a home that was owned for the past 65 years?"

Funny: I just had that discussion with someone over the weekend. Does the living life tenant know what was improved? Were these kids raised there? Obviously, over that amount of time, a lot is repairs/replacement. Someone has an idea what was original to the property; there might be some useful records in the county files.

"I have some idea as to things that were done"

Heck, my clients' "new kitchen remodel" was 20 years ago, at this point.

My clients added a pool right away, for example, to the neighborhood sales office/model home they bought around 1962 (they raised 6 kids there). So, in their case, they intend to use the additional cost for "pool and amenities" to be added to basis along with the adjoining perimeter fence.

Everything else either was already there, or has been replaced over time as it wore out. In the past 8 years, they've replaced a barrel tile roof, the sewer line, the pool was changed from chlorine to saline, and I think they are on their third pool cage. The mechanicals and the additional two pool cages are repairs/replacements, not additional improvements.

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