- quote -

I'd think a long time about John's response, being sure to
understand just what it is that turned "repair expenses" into
"improvements".

For deductability, see IRS Pub 523. Be careful not to confuse
rules for curent sales with rules under prior law (where fixup
expenses, meeting the specified conditions, are included in
calculating gain)

dick w

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- quote -

The improvements add to the basis of your home. If you have
lived in the home, for two out of the five years preceding
it's sale, you may exclude $250,000 ($500,000 if married
filing jointly)) of gains on the sale.

Sorry!!! I can't give advice on any loans you choose to
make!!=

"Jack" - John H. Fisher - TaxService[at]aol.com
Philadelphia, Pa - Atlantic City, NJ - West Wildwood, NJ
My Newsgroups & Boards at: http://members.aol.com/TaxService/index.html

Where Ignorance is bliss, 'tis folly to be wise!=

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posttogoogle[at]yahoo.com (Marty) writes:

- quote -

From the [unquoted] rest of your post, it sounds like
you're not up to date on the law. Get a copy of IRS
Publication 523.

Phil Marti
Topeka, KS

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I am selling my house and building a new house. I had some
repair expenses for electrical work required by the buyer of
my existing house. If I take some of the money from the
proceeds of the sale to pay for the electrical work, will I
have to pay taxes on that money? Is it deductible as a
selling expense? The rest of the money will be invested in
the new house. Also, if I want some money to buy furniture,
is it better to borrow more from the bank on my construction
loan for my new house or get a home equity line after the
home is completed?

Thanks,

Marty

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