2007-10-04 06:00:02 · 5 answers · asked by alan p 1 in Business & Finance ➔ Taxes ➔ United States
You can never deduct expenses related to your home. You can only add capital expenses (not the repair expenses) in the the cost.
You can exclude up to $250,000 of the gain on the sale of your main home if all of the following are true.
* You meet the ownership test.
* You meet the use test.
* During the 2-year period ending on the date of the sale, you did not exclude gain from the sale of another home.
If you can exclude the profit, then you don't need to report the sale.
2007-10-04 06:07:22 · answer #1 · answered by MukatA 6 · 0⤊ 2⤋
If your house is used for personal purposes, you are limited in what you can deduct annually such as: mortgage interest & real real estate taxes on schedule A, also in 2006 there was a credit or certain energy improvements.
If any of your house is business use (i.e. office in home, daycare) you may be able to deduct a percentage of your mortgage interest, real estate taxes, utilities and improvements. Typically the percentage is calculated based on square footage of the office versus square footage of the whole house (or # of rooms). Your deduction is limited to the amount of income made from the related business. Also, if you deduct some interest/taxes here you can't deduct that portion on your schedule A (no double dipping). You may also be able to use office in home on your state/local returns.
Typically you only recognize home improvements and some settlement costs when you sell.
2007-10-04 13:49:25 · answer #2 · answered by Dee 4 · 2⤊ 0⤋
Every year you can itemize the mortgage interest and the property taxes .
When you sell , you can add the cost of capital improvements to the cost basis when doing your capital gains calculations .
Other expenses do Not qualify for itemizing nor cost basis ( I think ) but always ,
Check with them that actually know . . .
Download the 1040 instruction book and Read It . . .
http://www.irs.gov/
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2007-10-04 13:08:47 · answer #3 · answered by kate 7 · 0⤊ 0⤋
some "expenses" like painting can be deducted from the sales price when you sell, but it has to be done not too long before you sell or it's just considered routine maintenance
2007-10-04 13:56:22 · answer #4 · answered by Anonymous · 0⤊ 1⤋
Yes you can, such as home repair and things of that nature. But you need a receipt.
2007-10-04 13:17:45 · answer #5 · answered by Anonymous · 0⤊ 5⤋