dzpost[at]dedekind.net says...

- quote -

You should include it as part of your cost basis.

Gary

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Can a repair allowance be deducted from the sale proceeds in
figuring captial gains on a house sale? This was an amount
we agreed to after the sale contract was written, so it
didn't change the contract sale price. But we agreed to it
because the home inspector claimed the roof needed work, and
we didn't want the buyer to wiggle out of the contract
through a contingency clause. It showed up on the
settlement statement under "ADJUSTMENTS FOR ITEMS UNPAID BY
SELLER" as "Seller Repair Credit".

If we had actually paid to have the repairs done ourselves
before selling the house, it would not have been deductible.
But since no repairs were actually done, and it reduced our
sale proceeds, I'm wondering if it should reduce our capital
gains.

-David

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