"Rita" <ritalowes[at]gmail.com> wrote:

- quote -

If you're using the loan proceeds to buy out your ex's share
of the house, then yes, the amount your pay your ex (i.e.,
the purchase price - not necessarily the total loan amount)
is added to your cost basis.

If you convert to a rental, there's no gain to recognize
until you sell the property.

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

Rita wrote:

- quote -

A mortgage is not a capital improvement. It does not add to
cost basis. As it is not acquisition debt, you can deduct
the mortgage interest you pay on only $100,000 unless the
loan plus other loans exceed the fair market value. Then the
deductible interest may be limited to an amount less than a
loan value of $100K.

--
Alan
http://taxtopics.net

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

"Rita" <ritalowes[at]gmail.com> wrote:

- quote -

taking a mortgage doesn't add to basis

___________________________________
<<< Benjamin Yazersky, CPA [NJ & NY] > > -----> real address on hobokeni or hobokenx <-----

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

"Rita" <ritalowes[at]gmail.com> wrote

- quote -

Not in a division of assets, no. Your cost basis would
include the entire original purchase price of the house.
Any amount you pay him in a divorce is just a division of
assets and does not increase your basis.

--
Paul Thomas, CPA
paulthomascpapc[at]bellsouth.net

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

I am taking out a 2nd mortgage or maybe home equity loan to
pay off my ex for his share of our home. Can I add this to
my cost basis of the home? I don't want to pay capital
gains on his equity should I turn this into a rental.

Thanks!

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >