<removeps-groups[at]yahoo.com> wrote in message
news:c64673b0-60ea-4b38-a938-05baae2949b1[at]o6g2000pre.googlegroups.com...
- quote -

As the house is being sold at a net gain in excess of the exclusion, I
wouldn't worry about this (as far as the "audit lottery" is concerned). As
long as you have a reasonable basis for taking the position you plan on, no
problem.

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HW "Skip" Weldon wrote:
....
- quote -

Not the only one, no...other than the two remodels (and outside
possibility some of the windows, maybe, if they were a real upgrade of
original single-pane to energy-efficient, for example) would seem to be
simply routine maintenance/repair.

Guess one can always use and see if get audited or not...I'm sure many
have folded in much even less likely to be actual capital improvements
in the past (not that that really justifies anything, just a
comment/observation).

--

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On Wed, 11 Feb 2009 15:52:04 EST, AlPastor <pjtallman[at]sbcglobal.netwrote:

- quote -

Am I the only one that thinks most of the listed items are
repairs/replacements/upkeep rather than improvements?

-HW "Skip" Weldon
Columbia, SC

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On Feb 11, 9:24 pm, AlPastor <pjtall...[at]sbcglobal.net> wrote:
- quote -

Then it's probably repair, so it does not add to cost basis. All the
other items you mentioned do strike me as improvements.

- quote -

That depends on the IRS. They require receipts, but may accept
substitutes such as canceled checks, especially if it sounds
reasonable. If I were an IRS auditor, I would accept it .

You wrote

- quote -

Does the withdrawal slip have the company's name on it? You should
make your best effort to contact the companies (maybe they're out of
business now, so you won't succeed), but document your efforts and
lack of response, if any, in the event of an IRS audit.

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<< ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- >

On Feb 12, 5:05*am, JoeTaxpayer <JoeTaxpa...[at]comcast.net> wrote:
- quote -

Joe,

My mom and dad divorced in 1980 (two years after purchasing the home).
My mom received the house in the divorce.

--Pat

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AlPastor wrote:

- quote -

When was your dad alive? Did he own it with your mom?
Depending on the state, she gets a stepped up basis for either half or
the entire house based on the value at his passing. This can make all
the difference to you.
Joe
www.blog.joetaxpayer.com

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On Feb 11, 3:26*pm, "removeps-gro...[at]yahoo.com" <removeps-
gro...[at]yahoo.com> wrote:
- quote -


I am not sure what the difference is wrt the painting (i.e. repair or
improvement). The old paint was pealing off so she had the entire
house repainted. Is that what you mean?

Unfortunately, I don't know the company name for the pool remodel. So
no way to get receipt. I know the company name for the new windows, I
haven't tried to contact them, are you suggesting that the cancelled
checks won't be proof enough?

--Pat

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On Feb 11, 2:23*pm, Harlan Lunsford <luns...[at]bellsouth.net> wrote:
- quote -

This is in California. Home sold for $555,000, she lived in it for 30
years continuously, selling expenses paid by her were $43,764.

--Pat

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On Feb 11, 1:43*pm, PeterL <po.n...[at]gmail.com> wrote:
- quote -

$555,000 Sales Price

In case these are your next questions:-)

She lived in the house continuously for 30 years.
Selling expenses paid by her $43,764

--Pat

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- quote -

In IRS Pub. 523 painting inside or outside is specifically
listed as an example of a repair that does not add to basis.

Bob Sandler

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On Feb 11, 12:52 pm, AlPastor <pjtall...[at]sbcglobal.net> wrote:

Sorry to hear about your mom like this.

- quote -

Is painting repair or improvement?

- quote -

These are big amounts. Can't you get the receipt from the company?

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AlPastor wrote:
- quote -

she lived for at least 2 of the past 5 years?

If so, AND gain is less than 250,000$, no gain; not even reportable.

I'm even trying to figure this one out for a client way up in UA; that's
Upper Alabama.

ChEAr$,
Harlan Lunsford, EA n LA

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On Feb 11, 12:52*pm, AlPastor <pjtall...[at]sbcglobal.net> wrote:
- quote -


What's the sale price?

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<< ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- >

Hi All,

You've all been so great in the past (huge THANKS!) I thought I'd
describe how I am figuring the cost basis for my mothers home, which I
sold in summer 2008, and get your comments. I want to be very
conservative so if any item is even slightly questionable I don't want
to use it. At the same time, my mom is not wealthy and needs every
penny. Thanks in advance to all who offer advice.

My mom has dementia and I am her power of attorney. She had to be
placed in a home in Fall 2007. I finally sold her home in the Summer
of 2008. Here are the details as for how I am calculating the cost
basis of the home. Note that my mom can't help me and I have had to
scour her file cabinet and basically review every checking account
statement going back as far as the bank had to come up with this list.

Home purchased 10/18/1978 for $123,000.00 -- Comment: I have the
original sale closing documents

Buyer Paid Settlement Charges 10/18/1978 for $1,240.65 -- Comment: I
have the original sale closing documents

New Garage Door 7/18/1990 $729.00 -- Comment: I have original Invoice

Guest Bathroom Remodel 3/23/1993 $1,885.49 -- Comment: I have original
Invoices

New Central Heating System 12/29/1995 $1,400.00 -- Comment: I have the
original Invoice

New Roof 8/15/1996 $6,090.00 -- Comment: Original Invoice and
documents

Exterior Painting 8/23/1996 $2,150.50 -- Comment: Original Estimate
and Receipt for payment

Kitchen Remodel 8/25/2001 $21,250.00 -- Comment: Original Invoice

Pool Remodel 8/13/2003 $4,445.00 -- Comment: Have World Savings
Withdrawl Slip with Mom's handwritten note

New Windows 1/28/2005 $6,750.00 -- Comment: Have World Savings
Withdrawl Slip with Mom's handwritten note and the three check numbers
they were paid with (she paid in installments)

This results in the cost basis = $168,940.64 with all of the above
calculated in.

These last two have me concerned as to whether this is enough to
satisfy the IRS. I know this work was done but I know that is not
enough. Anyone have any comments on these last two or if you spot
problems with the other items.

Cheers,
Pat

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<< ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- >