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Demolition of an existing home and sale of land
I had a modular home that I had not lived since 2006. House needed major repairs to be habitable again.
Found it was cheaper to demolish the home and clear yard, then sell the land.
Land sold for $45,000. House was appraised at $30,000.00 for tax purposes.
Is the cost of demolition, asbestos testing, and related cleanup expenses tax deductible?
If so, how and where is this entered on tax forms?
Wife passed away in 1999. have never remarried.
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Demolition of an existing home and sale of land
Unfortunately you have nothing to deduct. For the sale of a personal home (not an investment), any losses are not tax deductible. Assuming you bought the land and home for more than the $45,000 sales price, you have a capital loss. You don't owe tax on your proceeds, but you can't get any breaks for remediation or damage.
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Demolition of an existing home and sale of land
Unfortunately you have nothing to deduct. For the sale of a personal home (not an investment), any losses are not tax deductible. Assuming you bought the land and home for more than the $45,000 sales price, you have a capital loss. You don't owe tax on your proceeds, but you can't get any breaks for remediation or damage.
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Demolition of an existing home and sale of land
Thanks. That was what I was afraid of.
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