Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 0
i too am looking to make some house improvements. the proposed "painting" cost - stripping, sanding, painting, etc. - are est at $8000 on a $200K home.

something that large wouldn't be added to cost basis? or more to the point, is there any legal way to change the character of the work to be more than maintenance? it seems maintenance or repairs that are nearly 5% of the house value would be more than a casual personal expense. if it is still personal expense, would the characterization change if the repairs added up to 20% or 50% of the initial cost of the house itself?

for example, if you buy a "fixer-upper", say a broken down shack for $50k, strip the wooden walls and paint, resand and varnish the hardwood floors, and the like...not adding a major addition to the house such as another wing, bedroom or bathroom but otherwise turn the fixer-upper into a like-new, renovated move-in ready home that can be sold for $200k, wouldn't all those "repairs" be added to the cost basis?

just trying to get a feel for where the line is drawn. thanks.
Print the post  


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.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! 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.