Is carpet cost, painting etc… deductible from net sale. what forms do i use, will turbo tax software be okay?
Bought & Sold A Home In A Month Not My Primary. Net +7k What Is Deductible, Improvements Were Made?
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by the sounds of the question I assume that you are an investor. I am a tax prep manager and I have over 6 years of experience. any expense you incurred to make the house sellable can be claimed against your profit on the deal.
All improvements such as carpeting increase your basis in your home. Therefore your gain is going to be the selling price less your buying price and any improvements made after adding back any depreciation taken (sounds like this was a quick flip so probably won’t be a factor). Painting is considered an expense and not a capital improvement. However if you file a Schedule C you can deduct this expense. If you are somewhat competent with taxes turbo tax will work (get the upgraded version) if not visit a local CPA.
Stop.
http://www.irs.gov
forms, schedules and instructions
carpet – painting and such – are expenses of getting the property ready for sale, and obviously they worked!.
This is investment property – so look up the instructions for schedule E property sales.
Turbo tax may not handles this – so get your instructions from http://www.irs.gov – for schedule E – investment property first before you go to turbo tax.
GOD bless us always.
CPA-retired
Yes, any improvements you made like carpet, paint, plumbing, electrical, roof, etc., are deductible expenses from the net profit. You can use TurboTax or Quicken, and if you don’t use either of those I would strongly advise you to employ the services of H&R Block or Jackson Hewitt — it’ll be worth it to have the experts squeeze out every deduction you’re entitled to.