conversation: User (xil355): "We are looking to sell the property for $300k, and we originally bought it for $193k. We spent roughly $45k in renovations(new bathrooms, kitchen, floor)/new roof/new water heater.\n\nCan I add those costs to push up my initial buy to $238k? Assuming I can, the difference would be $62k. Would the capital gain be on the $62k, or would it be after we paid all realtor fees? If the realtor takes 6% ($18k), that would make our gain at $44k. \n\nAnd lastly - assuming I'm right that we only pay the capital gain on $44k - how much would we be paying? I read somewhere that it was 15%.\n"
  Self: "I don't know how being a foreign national plays into it, but yes, as a rule, improvements can be added to your basis (cost of the asset) to reduce the capital gains.  "
  