Re: gains on home sale

Posted by Herb Smith on June 8, 2006, 2:22 pm

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Seth Breidbart wrote:

>> Yes, a new pool and kitchen remodel are excellent examples

>> of "improvements" for which the cost can be added to your

>> basis. But painting, tree trimming/removal, etc., are

>> _maintenance_ items -- not improvements.

> But if done immediately before selling (in order to sell

> faster/at a higher price), can they then be considered

> selling expenses?

"Fixing-up" expenses as a selling expense (usually done
within 90 days of sale) are not allowed on a personal
residence, and haven't been allowed for a number of years.
Such maintenance items are no more a deduction than they
would be if the home owner was not selling the house. For a
business or rental property the situation is different.

In Pub 523, "selling expenses" are defined as including:

- Commissions,
- Advertising fees,
- Legal fees, and
- Loan charges paid by the seller, such as loan placement
fees or "points."

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