SDR’s recommendation of talking to an accountant is best.
You may be able to consider the 17K a reduction in the basis of the property so you won’t really feel the impact of it at all if it is a primary residence.
So, if you bought the home for $500K, then you really claim the cost was $483K. If you sell it for $500K and it is subject to capital gain tax, then you would pay tax on the 17K when you sell it.
Again – I’m not sure you can do this. An accountant would know. Or, maybe FLU. I hear he is really good at taxes.
