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rossdi525
New Member

Purchased a fixer upper for $46,300 and put $50k in home improvements. Sold home for $122k in 2016. Never rented, vacant the entire time. Do I have to claim gains?

Do I have to claim as capital gains?  Can I report the improvements as a loss?  Can I write off the sale expenses?
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Accepted Solutions
TaxGuyBill
Level 9

Purchased a fixer upper for $46,300 and put $50k in home improvements. Sold home for $122k in 2016. Never rented, vacant the entire time. Do I have to claim gains?

Yes.

Improvements are added to Basis.

Yes.


So your Basis is about $96,300.  Before factoring in your sellling expenses, it looks like you have a capital gain of about $25,700.

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3 Replies
TaxGuyBill
Level 9

Purchased a fixer upper for $46,300 and put $50k in home improvements. Sold home for $122k in 2016. Never rented, vacant the entire time. Do I have to claim gains?

Yes.

Improvements are added to Basis.

Yes.


So your Basis is about $96,300.  Before factoring in your sellling expenses, it looks like you have a capital gain of about $25,700.

bcadigan2017
New Member

Purchased a fixer upper for $46,300 and put $50k in home improvements. Sold home for $122k in 2016. Never rented, vacant the entire time. Do I have to claim gains?

Do I file this under investments as it was never rented out?
TaxGuyBill
Level 9

Purchased a fixer upper for $46,300 and put $50k in home improvements. Sold home for $122k in 2016. Never rented, vacant the entire time. Do I have to claim gains?

Yes.
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