Fixing Up Expenses

Mark Goldberg

Senior Member

Join Date: Jun 2005

Posts: 187
#1

Fixing Up Expenses

03-09-2006, 08:18 PM

Last yea rI researched how to handle say painting a primary residence just before selling it. My conclusion is you ignore it. It is not a capital improvement, nor is it allowed as a selling expense. Now the question has come up when someone fixes up (paints, repairs) a house truely held for investment do you treat these as an expense of sale or a Schedule A deduction subject to 2%?
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Brian EA

Senior Member

Join Date: Dec 2005

Posts: 777
#2

03-09-2006, 08:23 PM

You add it to the basis, thereby reducing your profit.

Everybody should pay his income tax with a smile. I tried it, but they wanted cash
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Ken

Senior Member

Join Date: Jul 2005

Posts: 180
#3

03-10-2006, 07:44 AM

painting

I agree with Brian.

ken
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JON

Senior Member

Join Date: Jul 2005

Posts: 1265
#4

03-10-2006, 09:27 AM

Fix up

expenses for sale are deductable as basis.
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