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Foundation Repair - Repair or Improvement?

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pketner

Junior Member
What is the name of your state? Oklahoma

I sold my main home in Nov. 2006. I rented it for the last year and 8 months. When my renters moved out it needed substantial foundation repairs which I made. All the while having a "For Rent" sign out front and taking calls from potential renters. After having no success with the applicants I decided to sell.

My question is does the foundation repair get reported as a repair expense on the rental side or should it be considered a basis adjustment on the Sale of Home side.

Thanks so much for any assistance.
 


LdiJ

Senior Member
What is the name of your state? Oklahoma

I sold my main home in Nov. 2006. I rented it for the last year and 8 months. When my renters moved out it needed substantial foundation repairs which I made. All the while having a "For Rent" sign out front and taking calls from potential renters. After having no success with the applicants I decided to sell.

My question is does the foundation repair get reported as a repair expense on the rental side or should it be considered a basis adjustment on the Sale of Home side.

Thanks so much for any assistance.
I would consider it a basis adjustment. Foundation repairs, even in a rental situation would generally add to basis and be depreciated rather than being considered "repairs".
 

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