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| My question is: US-specific QUESTION: My husband and I sold our house in Colorado last July. Are any of the home improvements that we completed in order to sell our house tax deductible? --------------------------------------------------------------------------- david ingram anwers: Some of it depends upon your definition of "improvements". If you mean you cleaned it up and painted, etc., before the sale and really what you did was regular repairs and maintenance, they can be deducted against the sale price if made within sixty days of the sale. The answer is also yes if you made real improvements such as added a room, built a new fence, added a porch, etc. In this case, they would be added to the Adjusted Cost Base of the house. Of course, with a $250,000 exemption per person for the profit on the sale, a couple has to have a pretty expensive house to have to pay tax. If you go to http://www.irs.gov/pub/irs-news/ir02-142.pdf You can get a new month old IRS bulletin dealing with the sale of a principal residence and this should give you more information. Your answer came from David Ingram - www.centa.com the CEN-TA Group US / Canada / Mexico Income Tax and Working Visa Matters 108-100 Park Royal South West Vancouver, BC, CANADA V7T 1A2 (604) 913-9133 Fax (604) 913-9123 Cell (604) 657-8451 10 AM to 10 PM 7 days a week Do you have a question? I don't answer all of them but you can leave one at: http://www2.jurock.com/askexpert/ask.asp?aid=121&cid=63 |
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