How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Lev Your Own Question
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29495
Experience:  Taxes, Immigration, Labor Relations
Type Your Tax Question Here...
Lev is online now
A new question is answered every 9 seconds

What is adjusted basis of home sold. I sold my primary house

Customer Question

What is adjusted basis of home sold.
I sold my primary house August of 2015 for $35,000.00.
I bought the house July 1975 for $18,000.00.
What is adjusted basis of home sold?
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.

The basis is your original purchase price - $18,000

The basis is adjusted by some items occurred during the time you owned the property.
See following publication - page 99

Table 13-1. Examples of Adjustments to Basis

For instance - additional to your home, complete remodeling, new roof - these are examples of improvements added to the basis.

Expert:  Lev replied 1 year ago.


Another issue - if the property was owned and used as your primary residence at least two out of last five years before the sale - you would be able to exclude the gain from taxable income.

If so - the gain (if any) is less that allowable exclusion ($250,000 for a single person) and you would not need to worry about calculating adjusted basis.

I appreciate if you take a moment to rate the answer.
Experts are ONLY credited when answers are rated positively.
If you still have any doubts, need clarification - please be sure to ask.
I am here to help you with all tax related issues.