[quote=CA renter]While SK is correct about the additional *tax assessment* not adding to your cost basis, the actual cost of the work completed should probably be applied to your cost basis (SK, please correct me if I’m wrong on this as this is your area of expertise). Of course, if they keep the $250K/$500K tax exclusion on occupied housing, it probably won’t make much of a difference…but with Janet Yellen at the helm of the Fed, who knows?[/quote]
Right, the costs do affect basis for income tax purposes. How the tax assessors form is filled out doesn’t.
