Reply

1.  Both I and Jenning were correct.  

Improvement cost has to be added to the cost basis of the property, and deduct from the final sales proceed to calculate capital gain.  (SFH imporvement can only be deducted from SFH sale) 

Repair/expense can be deducted from current year capital gain (your condo). 

Jenning suggest the trick to categorize SFH repair/improvement as repair/expenses, not improvement aka aquisition cost for SFH.   You can talk to her for details. 

2.  every two years a person can claim 250K primary residence exlusion. 

Just google it. "primary residence exclusion every two years"

3. maybe clarification on the condo sale might help you resolve your concern about SFH.