$110k in water damage due to broken pipe (not covered by insurance). Can I write this off as repairs? Or should I add it to basis? Thanks for your help.
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I would add it to basis. It may not matter in the end.This post is for discussion purposes only and should be verified with other sources before actual use.
Many times I post additional info on the post, Click on "message board" for updated content. -
Wouldn't this be a casualty loss? (not sure if it changes anything, except for which form(s) are filed)"You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe Howard
"That's enough! When you didn't know what you were talking about, you really had something! [to Curly]" -Moe HowardComment
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Additional basis reduces the capital gains from the sale. Losses in the year of sale are unlimited against ordinary income.Comment
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Sorry -- I forgot to mention (no small factor) that the house was empty while it was listed for sale, and that's why insurance didn't cover the repairs.Comment
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What would you do if not the final year?This post is for discussion purposes only and should be verified with other sources before actual use.
Many times I post additional info on the post, Click on "message board" for updated content.Comment
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You are ignoring the fact that this is a casualty loss, not a repair. And restoration expenses must be capitalized. (tangible property regs).
"$110k in water damage due to broken pipe (not covered by insurance)." is not an ordinary and necessary business expense.Originally posted by Pub 527Last edited by Rapid Robert; 03-06-2023, 09:02 PM."You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe Howard
"That's enough! When you didn't know what you were talking about, you really had something! [to Curly]" -Moe HowardComment
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