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Financial Planning / Tax Strategies
|Subject: Re: Home Improvements: What costs can you capita||Date: 11/13/2012 4:45 PM|
|Author: joelcorley||Number: 116908 of 121338|
You wrote, That's a common misconception. Fixup expenses in preparation for sale are not deductible, nor do they add to basis. They never were or did.
Before the law changed in 1997 you could include fixup expenses in determining how much you had to spend on a replacement residence, but the whole concept of replacement disappeared in that change in the law.
Ah. So none of these expenses matter to me?
I realize that you may be able to exclude some or all of the gain on your main home. I intend to move when I retire in perhaps another 8-10 years. However, I may consider converting the place to a rental rather than selling. (I've have to do a cost-benefit analysis on it first.) Does that change the issue at all?
I don't have any experience with any of this - other than that I converted my first residence to a rental back in the last '80s. I sold my last main residence several years ago at a loss and I didn't have any improvements in the place in any case. So even if improvements were an issue, it wouldn't have mattered to me.
Now for the first time I'm dumping money into a place, post purchase and wondering if I should be keeping records. It sounds like your answer is, Probably not.
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