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Mark Taylor
Mark Taylor, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 2308
Experience:  Certified Public Accountant
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In August 2016 I sold a second home that I bought in 2012

Customer Question

In August 2016 I sold a second home that I bought in 2012 for $25,000. I spent winter months there. I did costly updates, repairs and renovations to the home. Selling price was $58,900, closing costs over $8000. What ownership and renovation expenses are used to figure any capital gains taxes owed.
JA: The Accountant will know how to help. Is there anything else important you think the Accountant should know?
Customer: I am 83 years old, the main reason for the sale is increased disability that prevents me from using my winter home. I own a main home that has a reverse mortgage on it.
Submitted: 1 year ago.
Category: Tax
Expert:  Mark Taylor replied 1 year ago.

Hi, my name is Mark. I will be happy to help you with your questions. What kind of updates, repairs and renovations did you do?

Customer: replied 1 year ago.
New kitchen cabinets, new flooring, wall closings, new appliances, new central air/heat, new landscaping, paint and plaster, complete interior furnishings.
Expert:  Mark Taylor replied 1 year ago.

All of these expenses would add to the basis of the property. So to determine the gain or loss you would take your original purchase price of $25,000 + updates, repairs, and renovations = adjusted basis. You your gain or loss would be $58,900 less your adjusted basis less closing costs $8,000.

Customer: replied 1 year ago.
Waiting for your online response...
Expert:  Mark Taylor replied 1 year ago.

Were you able to see my response?