tax question, again

[houseelf]

O.K. you tax gurus, I have a question for you.

May I deduct the cost of house projects undertaken in order to put the house in showing condition? Specifically, we put in a new kitchen floor and a garage door at the advice of our real estate agent.


Thoughts?

Kelly

I *think* this might affect your "cost basis" in your house - - but cost basis is only at issue if the sale exceeds the max amount of profit you are allowed free of capital gains (which is several hundreds of thousands of dollars as a couple). As far as I know you can't write it off as a moving expense or just general pain and suffering! But, you might want to consult a pro . ..

I agree w/ sms.

I will eventually have an answer on this for the reverse situation. We sold MILs house at a loss and I hope that the repairs we had to make to sell it can be added to the loss. I don't think things like having the furnace serviced count but perhaps replacing the garage door and things of that nature will.

[DCJenn]

Kelly-

It only counts after the sale and then there are some highly stupid complicated factors- I always let Turbo Tax walk through it for me. Check their website to see if they have any answers.

Jenn

[Lo]

as an accountant...you cant take the cost of the "repairs and maintenance" (for lack of a better term) on your personal 1040, but when you do sell the house it will, like others said increase your basis therefore making your cap gain less aka being taxed less, unless of course you buy a new house that has more value than your old and then you can take the credit for that and not get taxed on anything at all

but in answer to your question, no you get no deduction for this.