John just sold the home where he's lived for eight years and made a nice profit. Which of these statements about the profit he made is FALSE? Unset starred question He can include depreciation costs in the adjusted basis he uses to calculate the amount of his capital gains. He'll be allowed to exclude some or all of the amount of his capital gains from his income tax liability. If he made any improvements to the property, the cost of those improvements is included in his adjusted basis. In order to determine the amount of his capital gains for tax purposes, he needs to first know his adjusted basis