Which of the following is NOT added to the original basis to find the adjusted basis of a home?

To determine the adjusted basis of a home, various costs and expenses are considered, and it is essential to understand how these factors influence the overall calculation.

The original basis of a home typically includes the purchase price and any associated costs of acquiring the property, such as closing costs. When considering the adjusted basis, certain expenditures can be added to the original basis. This includes the cost of improvements made to the property and assessments specifically for local improvements that enhance the property's value. Additionally, costs related to the restoration of the property after a casualty event (like a natural disaster) can also be added to the basis since they directly contribute to bringing the property back to its original state or improving it.

In contrast, the total amount of a casualty loss is not added to the basis. Instead, a casualty loss is a deduction that can decrease one's taxable income in the year the loss occurs. This loss affects the taxpayer's annual tax return rather than the basis of the property. Therefore, it does not contribute to the adjusted basis in a way that would increase the value of the home for purposes of calculating capital gains or losses when the property is sold.

This distinction helps clarify why the total amount of a casualty loss is the correct answer, as it is not considered an