Sale of Second Home that included a Boat in the sale price

[mattinthemiddle]

I sold a second home, and a boat was included in the sale price. The boat was written in the real estate contract as part of the deal. I know I can only add improvements to my cost basis but was wondering if the fair market value of the boat has any bearing on a deduction of the sale price or can be added somehow to the cost basis of the property? Obviously, I am trying to minimize capital gains.

Thanks in Advance!!

[Anonymous_ · Accepted solution]

The boat is likely personal property (not real property, aka real estate) and should have a separate basis.

As such, a portion of the sales price should be allocated to the boat.

[Mike9241]

a sales price allocation is needed. any loss on the sale of the boat would not be deductible since it is personal property. and a loss on the sale of any personal residence is also not deductible.