topic selling house in Get your taxes done using TurboTax

selling house

mxu1 — Wed, 30 Oct 2024 17:29:47 GMT

I spent $40000 to prepare selling the house in 2024. the house may sell in 2025. May I put $40000 into cost of selling in 2025?

Re: selling house

JandKit — Thu, 31 Oct 2024 12:12:50 GMT

Hi mxu1,

Thank you for this question.

You can generally include the full amount spent on preparing your house for sale in 2024 as part of your cost of selling when the home is sold. Importantly, the expenses have to be directly related to making the house sellable.

Directly related expenses could be any of the following:

1. Selling cost which includes selling commissions, legal fees, and advertising fees
2. Property Taxes which include those taxes paid upto the point of sale
3. Mortgage Interest for the portion of the year that you owned the home
4. Home improvements and repairs to increase market value before the sale
5. Closing cost such as title and escrow fees

These are but a few of the expenses that could be included in the $40,000 that you mentioned.

Good luck to you!

Re: selling house

Alicia65 — Wed, 30 Oct 2024 17:40:26 GMT

The answer to your question is yes. I sold my home, what can I deduct?

Any home improvements that are permanent changes will be added to basis of home sold. Any repairs such as painting changing carpet etc. can also be written off as expense of sale. Remember the 1st time home exclusion. If you are single your earings can be $250,000 tax free If married $500,000.