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Author: JAFO31 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121159  
Subject: Re: deductability of fixing-up expenses? Date: 3/30/2000 1:05 PM
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<<<<"IIRC, fix-up expenses did not add to basis even under the old rules. They affected the amount realized from the sale, which affected how much the new residence had to cost for full deferral of the gain, but they did not add to basis and, therefore, did not affect the gain. Clear? IOW, no. These are repairs that don't add to basis.">>>>

Does not the last sentence highlight the real issue? "Fix-up expenses" sounds like a colloquial usage to me and could be describibg either repairs (which would not add to basis) or capital improvements (which would add to basis). I am especially concerned about this distinction, in this instance, because the original poster also mentioned remodelling/additions.

To the resident pros, espcially TMFexRO and RooCat, would it be more helpful if the original poster was a little more detailed in actual description of work done, or am I just confused?

Regards, JAFO



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