achtungm...[at]hotmail.com wrote:

- quote -

Nothing. Your sales price is $10,000 lower so your gain is
$10,000 lower.

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achtungm...[at]hotmail.com wrote:

- quote -

Nothing.
The damage you describe does not meet the "sudden and
unexpected" criteria for a casualty loss. Your gain on the
sale is less, possibly leading to less tax being due from
the sale.

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achtungmike[at]hotmail.com posted:

- quote -

Actually, the _proceeds_ from the sale will be what your
buyer agreed to pay. So according to the facts presented,
that was $10,000 less than you originally agreed to -- and
that's an effective deduction.

If you sold your main home [which you occupied for at least
2 of the last 5 years] for a profit less than $250,000
($500,000 if MFJ), then you owe no taxes, and don't even
need to report the sale.

Bill

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I sold my home this year. The purchase agreement was
reduced $10,000 because after an inspection of our home we
discovered damage to the roof. The damage was not covered
by our home owners insurance. We had three bids to repair
the roof and for mold removal. The buyer agreed to purchase
our home for $10,000 less and he would proceed with the
repairs. What can I deduct?

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