I spent $40000 to prepare selling the house in 2024. the house may sell in 2025. May I put $40000 into cost of selling in 2025?
You'll need to sign in or create an account to connect with an expert.
Hi mxu1,
Thank you for this question.
You can generally include the full amount spent on preparing your house for sale in 2024 as part of your cost of selling when the home is sold. Importantly, the expenses have to be directly related to making the house sellable.
Directly related expenses could be any of the following:
1. Selling cost which includes selling commissions, legal fees, and advertising fees
2. Property Taxes which include those taxes paid upto the point of sale
3. Mortgage Interest for the portion of the year that you owned the home
4. Home improvements and repairs to increase market value before the sale
5. Closing cost such as title and escrow fees
These are but a few of the expenses that could be included in the $40,000 that you mentioned.
Good luck to you!
The answer to your question is yes. I sold my home, what can I deduct?
Any home improvements that are permanent changes will be added to basis of home sold. Any repairs such as painting changing carpet etc. can also be written off as expense of sale. Remember the 1st time home exclusion. If you are single your earings can be $250,000 tax free If married $500,000.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
YOPQIR1234
New Member
DMorgan24
New Member
CB2012
New Member
Toyota22
New Member
AM Choudry
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.