Capital gains after quit-claim

[bornitz]

What is the name of your state? California

I just bought out my ex domestic partner out of our house for a fair amount.

When I sell, in trying to compute capital gains owed, what can I deduct besides outstanding loan amount?

Are any of the following valid deductions?

1. amount paid for quit claim
2. verifiable/documented improvements
3. mortgage

Anything else?

Thanks in advance,
Bonnie

[bornitz]

One thing I forgot to mention was that I've already lived in the house for over 4 yrs.

Thanks,
Bonnie

[Snipes5]

You can't deduct the outstanding loan/mortgage amount. The fact that you have a loan out on the property is completely irrelevant when computing gain.

Your basis is what you paid for the property, plus improvements.

You can deduct the costs of the sale, ie commissions, anything done in the 90 days prior to the sale to help you sell it, ie "curb appeal' stuff, painting, etc.

Capital gain is gross selling price, minus costs of sale, minus basis.

That's all you get.

Snipes

[bornitz]

what about the buyout amount from other owner of property? does that get added to my basis? Sorry if I wasn't being articulate.. I guess I'm primarily concerned with the quit-claim amount.

Thanks,
Bonnie

[Snipes5]

The quit claim is technically a purchase, so that is added to the basis as well.

Snipes

[bornitz]

Thanks so much for the info, much appreciated.

Regards,
Bonnie