Captial Gains for Rental Property

[rhoades4141]

My husband & I married in 2003. He moved out of a mobile home trailer that he purchased in 1994 for $36,000 and lived in until we married in 2003. We have rented to family below fair market value the entire time. We sold that property in 2020 for $112,000. He made improvements to the property prior to 2003 that total $17,200. Can any of these costs be deducted from our capitol gains?

County roads -$10,000

Remodel of bath $1,500

new floors $400

New Roo $1,800

Tie downs $2,600 (needed to refinance and insure the mobile home)

Added badroom $900 (put up wallboard and installed window and closet)

Thanks,

Theresa

[ColeenD3]

Yes, all the improvements should have been added to the basis of the property and depreciated when it first became a rental.

You mention county roads. Was there also land involved that he improved and was part of the sale?

[rhoades4141]

My husband & I married in 2003. He moved out of a mobile home trailer that he purchased in 1994 for $36,000 and lived in until we married in 2003. We have rented to family below fair market value the entire time. We sold that property in 2020 for $112,000. He made improvements to the property prior to 2003 that total $17,200. Can any of these costs be deducted from our capitol gains in 2020 taxes? Since it was rented to family, we never depreciated the unit.

County roads -$10,000

Remodel of bath $1,500

new floors $400

New Roo $1,800

Tie downs $2,600 (needed to refinance and insure the mobile home)

Added badroom $900 (put up wallboard and installed window and closet)

Thanks,

Theresa

[rhoades4141]

My husband & I married in 2003. He moved out of a mobile home trailer that he purchased in 1994 for $36,000 and lived in until we married in 2003. We have rented to family below fair market value the entire time. We sold that property in 2020 for $112,000. He made improvements to the property prior to 2003 that total $17,200. Can any of these costs be deducted from our capitol gains in 2020 taxes? Since it was rented to family, we never depreciated the unit.

County roads -$10,000

Remodel of bath $1,500

new floors $400

New Roo $1,800

Tie downs $2,600 (needed to refinance and insure the mobile home)

Added badroom $900 (put up wallboard and installed window and closet)

Thanks,

Theresa

[ColeenD3]

Your question was answered in this thread, with an additional question about the country roads.

Yes, all the improvements should have been added to the basis of the property and depreciated when it first became a rental.

You mention county roads. Was there also land involved that he improved and was part of the sale?

Mar 24, 2021 at 6:21 PM