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If I sold a home, can I deduct the cost to repair prior to selling? What other expenses can be deducted from sell of a second home

Fix-up expenses ended with the Taxpayer Relief Act of 1997.

louisebthacker
Returning Member

If I sold a home, can I deduct the cost to repair prior to selling? What other expenses can be deducted from sell of a second home

I spoke with a Turbo Tax "tax expert", and she told me she had 25 years experience and that the 90 day rule for repairs/fix up to sell was dedectable; however, she could not find IRS code for it and a google search showed as you mention that is is no longer dedectable.

Carl
Level 15

If I sold a home, can I deduct the cost to repair prior to selling? What other expenses can be deducted from sell of a second home

I spoke with a Turbo Tax "tax expert", and she told me she had 25 years experience and that the 90 day rule for repairs/fix up to sell was dedectable;

Again, that ended back in 1997.

, she could not find IRS code for it

Because it hasn't existed for more than 20 years now.

If I sold a home, can I deduct the cost to repair prior to selling? What other expenses can be deducted from sell of a second home


@louisebthacker wrote:

I spoke with a Turbo Tax "tax expert", and she told me she had 25 years experience and that the 90 day rule for repairs/fix up to sell was dedectable; however, she could not find IRS code for it....


Exactly, and the IRS is concerned with the Code (and Regs), not with the number of years of experience of "tax experts".

If I sold a home, can I deduct the cost to repair prior to selling? What other expenses can be deducted from sell of a second home

The comment was made that "If you needed to make home improvements in order to sell your home, you can deduct those expenses as selling costs as long as they were made within 90 days of the closing." Can someone please advise where in an IRS Publication or code or whatever it says that. IRS staffers indicate in the negative.

If I sold a home, can I deduct the cost to repair prior to selling? What other expenses can be deducted from sell of a second home


@Multifrus88 wrote:

The comment was made that "If you needed to make home improvements in order to sell your home, you can deduct those expenses as selling costs as long as they were made within 90 days of the closing." Can someone please advise where in an IRS Publication or code or whatever it says that. IRS staffers indicate in the negative.


That rule was eliminated from the law in 1997 or maybe even earlier.  The current rules are in publication 523.

https://www.irs.gov/forms-pubs/about-publication-523

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