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Tax.appeal.168
Tax.appeal.168, Tax Accountant
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I have spent over 4 I

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I have spent over





4




















I spent
$200,000 to remodel my house this year to increase the assesed valuation of the house to increase the reverse mortgage loan amount. Is this amount included in the cost of the house when determining the capital gain when the house is sold?
Welcome, THANK YOU for using Just Answer. My goal is to help make your life...a little...LESS taxing.

The amount spent on qualified improvements becomes part of the cost basis when selling a home. Example, original basis was $600,000, you spent $200,000 in qualified improvements. This now makes the cost basis $800,000. Please note that this is just a generic number I used for example purpose only. For more detailed information, you can refer to the IRS Pub 523:

http://www.irs.gov/pub/irs-pdf/p523.pdf

Please let me know if I can be of further assistance to you regarding this matter.

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Hello again Kiyoshi,

Here is a link to an article addressing the matter:

http://www.bankrate.com/brm/itax/edit/tips/stories/residence_basis.asp
Kiyoshi,

THANK you for the high rating and the bonus. No need to respond to this thread, just the only way that I could thank you. Happy and safe holidays to you and yours.

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