You stated, "The cost of sale (including any required fixes per the contract) are used in the sale of the asset computation form 4797." We had a signed contract/price with the buyer, contingent upon the boat survey. After the survey, the buyer and we signed an amendment to the original contract requiring we "fix" several items to close the sale. The cost of "fixing" these items was a few thousand dollars. So would we enter these costs on Line 21? It really comes down to does the IRS consider these additional costs required to to close the sale as "expense of sale," or does the IRS consider these as nondeductible repairs/preparation for sale?
Thanks for your help.
