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Posted by Bill on March 27, 2007, 1:02 am
Please log in for more thread options achtungmike@hotmail.com posted:
> I sold my home this year. The purchase
> agreement was reduced $10,000 because
> after an inspection of our home we discovered
> damage to the roof. The damage was not
> covered by our home owners insurance. We
> had three bids to repair the roof and for mold
> removal. The buyer agreed to purchase our
> home for $10,000 less and he would proceed
> with the repairs. What can I deduct?
Actually, the _proceeds_ from the sale will be what your
buyer agreed to pay. So according to the facts presented,
that was $10,000 less than you originally agreed to -- and
that's an effective deduction.
If you sold your main home [which you occupied for at least
2 of the last 5 years] for a profit less than $250,000
($500,000 if MFJ), then you owe no taxes, and don't even
need to report the sale.
Bill
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