I inherited the house in 2004. The FMV at that time was $175,000. My sister lived in the house from 2004 until her death in 2018. Between 2008 and 2010, I made improvements (bathroom, kitchen, HVAC) totaling $50,000. In 2018, I sold the house for $215,000. How do I adjust the basis (which Turbotax says is the FMV in 2004) to reflect the costs of the improvements?
You'll need to sign in or create an account to connect with an expert.
If you allowed your sister to live there rent free or for less than Fair Rental Value, then it is your second home. YOu begin with the (FMV in 2004) basis and add the cost of improvements. This gives you a new basis. Contrast it to the sales price plus expenses of sale.
You can't deduct a loss on personal use property.
If you allowed your sister to live there rent free or for less than Fair Rental Value, then it is your second home. YOu begin with the (FMV in 2004) basis and add the cost of improvements. This gives you a new basis. Contrast it to the sales price plus expenses of sale.
You can't deduct a loss on personal use property.
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
colonel_biggs
Level 2
DebSam
New Member
tomlamson
Level 3
Somafm
Returning Member
sfloodmd
New Member