Section 121

[Maria]

Hello,

I happened to read my college book during the weekend. It says repair and improvement expenses prior to sell your primary residence is neither considered selling expense nor increase the adjusted basis of your home. This is different from what we believed. Do you guys deduct those expenses? For taxpayers who have recognized gain it matters.

Thanks a lot!

[sea-tax]

Hello,

I happened to read my college book during the weekend. It says repair and improvement expenses prior to sell your primary residence is neither considered selling expense nor increase the adjusted basis of your home. This is different from what we believed. Do you guys deduct those expenses? For taxpayers who have recognized gain it matters.

Thanks a lot!

Maria see the tax book on page 6-19 lower right hand corner. " adjusted Basis of Residence"

Also look at IRS Pub 523

I think to put a new roof on the house to sell it would be included as additional basis.
At least that is the way I read it.

[solomon]

Deducting

fix up expenses prior to the sale were under the old rules of the last century.

[WhiteOleander]

Repair and maint. do not go to basis. But, actual improvements do.

[BJM]

Section 121

That was under the old rules and I think the form we filled out at that time was a 2119 and it had a section or line to include the costs of fixing up expenses, which I believe included expenses 90 days before and paid within 30 days after the sale.

[Maria]

Thanks

Thanks. So my text book is a little bit outdated. It cost me close to $300 six years ago. I should have sold it . I tried to look up the code but it seems it does not say. I will read pub 523. Thanks.