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day2play
Returning Member

Items to include in adjusted cost basis of spec house

I am in the process of rehabbing a house that I plan to resell.  I am not sure which items I can include in the cost of improvements, which will affect the cost basis. There are a lot of items that I am using that improve the value of the house, but don't necessarily stay with the house. Can I include items such as saw blades, disposable gloves, disposable ear plugs, trash bags, disposal fees, rental porta-potty, rental dump trailer, rental tools, drill bits, temporary electrical power?  I am inclined to think these items would be included, bcause if I hired someone to make the improvements, they would pass on those expenses to me.

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3 Replies
DaveF1006
Expert Alumni

Items to include in adjusted cost basis of spec house

To clarify, was this house a rental or just an investment property?

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day2play
Returning Member

Items to include in adjusted cost basis of spec house

This is an investment property.  I have an LLC and am working rather slowly on rehab properties.  I deducted business expenses such as professional fees, insurance, tools, and mileage, etc.  

day2play
Returning Member

Items to include in adjusted cost basis of spec house

This is an investment property.  I have an LLC and am working rather slowly on rehab properties.  I deducted business expenses such as professional fees, insurance, tools, and mileage, etc.  

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