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New Member
posted Jun 4, 2019 7:10:14 PM

Would foundation and structural repairs be considered and improvement or repair when calculating my capital gains on a house I sold

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1 Best answer
Expert Alumni
Jun 4, 2019 7:10:15 PM

They would be repairs and would be reported as an expense in the year incurred if the house was a rental property.  If the house was purchased as an investment (e.g. bought to fix-up and sell) the expenditures would be added to the cost basis of the house.

2 Replies
Expert Alumni
Jun 4, 2019 7:10:15 PM

They would be repairs and would be reported as an expense in the year incurred if the house was a rental property.  If the house was purchased as an investment (e.g. bought to fix-up and sell) the expenditures would be added to the cost basis of the house.

New Member
Jun 4, 2019 7:10:18 PM

I think it would be a repair. If you consider the foundation of the house much like the suspension on your automobile then nobody would buy the car with a rough ride. No one wants a house with an unsteady or cracked foundation. An improvement would be adding brick to the foundation as would custom wheels to the automobile. Neither of those examples would change the stability but just the appearance.