Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: joelcorley 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 121219  
Subject: Re: Home Improvements: What costs can you capita Date: 11/13/2012 4:45 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
TMFPMarti,

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.

- Joel
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Apple

The Saddest Place on iPhone Day
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement