Tax Question
Hi,, Can anyone answer me this .. I bought and paid 170K cash for a house in 2002. ( a second home ) I spent 25K making improvments in 2003 so that I was able to sell it in 2003 for 212K. Can I deduct all or a portion of this 25K that I spent which will bring the gain down to 17K ( 170K+25K=195K-212K=17K ) or must I pay capital gains tax on the difference of 170K which I paid and 212K which I sold it for (= 42K ) anyway ? Thank you
You should be looking at it differently.
After a 6% sale commission you are looking at a 12,000.00 dollar LOSS.