ripvanwinkle
Well-Known Member
All that is necessary for evil to succeed is that good men do nothing - Edmund Burke 1729 -1797
Joined: Jan 9, 2011 22:36:42 GMT -5
Posts: 1,360
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Post by ripvanwinkle on Aug 23, 2014 15:57:51 GMT -5
I buy a home. Sell after 10 or 20 yrs. Do some repairs, (roof, new furnace, plumbing etc). Just when are these additions/repairs tax deductable. No home business. If I sell my house and have 20 yrs of receipts in a shoe box is this when I claim deductions off my gain in the home sale on taxes?
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TheOtherMe
Distinguished Associate
Joined: Dec 24, 2010 14:40:52 GMT -5
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Post by TheOtherMe on Aug 23, 2014 20:24:55 GMT -5
If the home repairs are for a home with no business use, repairs are never deductible.
Improvements to the home are added to the basis and that affects your gain when the home is sold. Your filing status determines how much of the gain is excluded from income. At present, it is $250,000 of gain is excluded for a single person and $500,000 for married filing joint.
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mwcpa
Senior Member
Joined: Jan 7, 2011 6:35:43 GMT -5
Posts: 2,425
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Post by mwcpa on Aug 24, 2014 5:35:18 GMT -5
rip... see this publication (523) from the IRS www.irs.gov/publications/p523/index.html
specifically under the caption "Determining Basis"
"Improvements. These add to the value of your home, prolong its useful life, or adapt it to new uses. You add the cost of additions and other improvements to the basis of your property. "
but,
"Improvements no longer part of home. Your home's adjusted basis does not include the cost of any improvements that are replaced and are no longer part of the home." |
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