Adelaide sells her personal residence, which she has owned and lived in since 1988. For purposes of determining her gain or loss on the sale, which of the following expenses does not increase the basis of her home:
a. Incorrect. Adding a new roof is a capital improvement that adds to the basis of a home.
b. Incorrect. Adding aluminum siding to a home is a capital improvement that adds to the basis of the home.
c. Correct. Repairs, such as painting a room, do not add to the basis of property.
d. Incorrect. Any extensions or additions to a home, such as a garage, increase the basis because they are capital improvements.