Quote:
Originally posted by mmm3587
Just a wild ass guess, but I would think you might be able to deduct (or rather, adjust the basis to reflect, but who's counting) improvement costs, repair costs, etc., just like you used to be able to with primary residences when all capital gains were taxable (as opposed to the current scheme of capital gains being taxable only above a certain amount).
But, that's just a total guess. I'll keep the smartass "Good problem to have!" responses to myself.
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Yes, you're right (that IRS website is pretty informative -- I recommend it for some light reading before bedtime!). Unfortunately, we haven't made many improvements, but landscaping counts, so we have done some of that, new windows and updating electric (although I'm not certain I have the bill for that -- maybe the electrician could do a new one?). However, not enough to make a big dent in the gains.
Don't get me wrong -- I'm thrilled our junky little weekend house has turned into such a bonanza for us -- but tens of thousands of dollars owed in taxes (when I wasn't expecting to have to pay them) really smarts. (Ouch --
thaaaat's gonna leave a mark.)
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