Capital Gain on sale house property

When selling a house, interior design and furnishing costs incurred after purchase are generally considered 'cost of improvement' rather than part of the original acquisition cost. While these costs can be deducted from the sale consideration, not all expenses qualify. Improvements that enhance habitability, like repairs, are eligible. However, costs solely for comfort or aesthetics, such as new paint or air conditioning, are typically excluded from being treated as capital improvements for tax purposes. Indexation benefits may be available on eligible improvement costs from the year they were incurred.