I'm not sure why you want to spamblock a hotmail account --
there was a report which claimed that never-used hotmail
accounts get spam. But that's not why I'm writing.

Jannis wrote:

- quote -

It sounds to me like a reduction of basis in the house,
so it's only taxable when sold. If (as it appears) the
house is to be your principle residence, and you stay
there over 2 years, $250,000 ($500,000 if married filing
joint) of the gain is excludable, that may not be important.

- quote -

Any work you have done to the house adds to the basis.

--
This account is subject to a persistent MS Blaster and SWEN
attack. I think I've got the problem resolved, but, if you
E-mail me and it bounces, a second try might work. However,
please reply in newsgroup.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Almost one year ago, I have bought a house in California
from a developer, but his general contractor has not
finished yet the pick-up work, which is quite extensive.

Now the general contractor, probably very busy working on
other jobs, has proposed a settlement of about $10,000 for
the punch list repairs. If I accept the settlement, is it
taxable?

Do I have to complete the work hiring other contractor, can
I do it myself at my own discretion, or not do it at all if
I can live with the way the house is right now.

Thank you very much in advance.
John J.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->