Fixing Up Expenses

[Mark Goldberg]

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%?

[Brian EA]

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

[Ken]

painting

I agree with Brian.

[JON]

Fix up

expenses for sale are deductable as basis.