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Author: inparadise Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121188  
Subject: Vacation Home Reciepts to Save Date: 1/9/2014 10:49 AM
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We bought a house a couple of years ago that we originally intended to turn into a vacation rental, but are instead moving into full time in about 2 years. In the past two years we have done quite a bit of documented work on this fixer upper, and traveled extensively to get here. Our personal use, which did not involve the required work time, was less than the 2week that would be allowed if it were a rental, if that matters at all.

As I go through my receipts, I am no longer sure what I should keep now that it will be a vacation home converted to primary residence. For all I know at some point it may even become a vacation rental. Some of my groupings include:

1. Capital Improvements. Would think these were still valid to keep.

2. "General Maintenance" items but as a fixer upper, IMO everything was basically a capital improvement. We paid a low price because of the nasty condition of the place, and have made great strides in improving it, having pictures to prove it. Had it been a rental I intended to write these off as an expense or put towards my cost basis as a general improvement, (after checking with a tax pro which I have not done or had to do since it never went on the market, but that was why I was keeping them.) I lump all the paint, cleaning materials into this.

3. Purchasing costs? Can I add to my basis the money I spent looking for and buying this property, including travel and inspections?

4. Utilities and yard work: I assume utilities, tax bills and lawn cutting is out the door, but what about major brush clearing? We had about 300' of brush removed from the river bank so that we can actually see it from our house and IMO that greatly improves the property. Will certainly sell faster and probably for more with the huge view.

Would love any insight/corrections.

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