JohnB5677
Employee Tax Expert

Investors & landlords

When you bought the apartment you established a Cost Basis (The amount you paid for it).  Your remodeling cost will be added to this Basis. 

The profit or loss on the transaction will be the selling price of the apartment less the adjusted basis.

 

Other things that can be deducted:

  • Real estate taxes
  • Mortgage Interest
  • Selling commission
  • Various fees
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