selling home

Forum|Forum|3 years ago
November 16, 2022
3 replies
32 views

I am a Florida resident. My wife is selling her primary residence in New York. As a consequence, we can not use the $500,000 exclusion, but only $250,000 on her NY State return. She paid $20,000 in 1972, and we have sold 2 weeks ago for $650,000. My question is what expenses may we use to offset the gain? for example .... an addition? potential falling trees removed? patio build? other expenses besides basic Maintainance?

rferreira 1

Level 4

Congratulations to your wife! Since she purchased the house in 1972, did she make any capital improvements to the home such as new roof, windows, heating, A/C? These expenses will add to her basis and reduce her gain. You already mentioned improvements to help sell the house, but she will incur closing costs as well.

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FredstewAuthor

Level 2

Thanks, Just wanted to make sure all our "upgrades" were indeed added to the cost basis. Over the many years we have significant upgrades, but I was unsure which ones added to basis. painting? cost of moving to new home.... any other that are typical or perhaps might you name a few that are specifically NOT approved by the IRS to add to the cost basis. Thanks again