Can the cost of renovation be deducted from capital gains?

Yes, the cost of renovation can be deducted from capital gains when selling a property, as long as the renovations are considered capital improvements that add value to the property or extend its useful life. These costs can reduce the property's adjusted basis, which in turn lowers the taxable capital gain. However, routine maintenance and repairs that do not enhance the property's value cannot be deducted. It's advisable to keep detailed records of all renovation expenses for tax reporting purposes.