Generally, the IRS considers an improvement to be anything that has a useful life of one year or more and is still part of the home when sold. The following are just some examples: additions, landscaping, roof, plumbing, etc. Please refer to IRS Publication 523 for a more complete list (This link requires Adobe® Reader®).
After you finish your federal tax return, your information will accurately and automatically transfer into your state return. Just answer a few state specific questions, and you're done.
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