Massachusetts
I'm selling a 2 family house which I've owned for 20yrs.
One apartment has been owner occupied the whole time , and the other has been rented.
I've been depreciating the rental portion of the house (1/2 of the purchase price of the house less portion for land) for the 20 years, and also I depreciated 1/2 the cost of new roof, new siding, new windows & new garage .
The kitchen in the owner occupied apt. was in poor cond. and required complete remodel to the tune of 35K just two months before selling.
My question is three fold:
1.) Upon sale, does the entire R/E Broker commision come off the sale price of the house prior to figuring capital gain?
2.) Does the kitchen remodel also come off the top due it's being necessary to make the sale because of it's poor prior cond.?
3. ) How is all the depreciation treated as it applys to cost basis and capital gain?
Thank you,
Higgins -- from Massachusetts
I'm selling a 2 family house which I've owned for 20yrs.
One apartment has been owner occupied the whole time , and the other has been rented.
I've been depreciating the rental portion of the house (1/2 of the purchase price of the house less portion for land) for the 20 years, and also I depreciated 1/2 the cost of new roof, new siding, new windows & new garage .
The kitchen in the owner occupied apt. was in poor cond. and required complete remodel to the tune of 35K just two months before selling.
My question is three fold:
1.) Upon sale, does the entire R/E Broker commision come off the sale price of the house prior to figuring capital gain?
2.) Does the kitchen remodel also come off the top due it's being necessary to make the sale because of it's poor prior cond.?
3. ) How is all the depreciation treated as it applys to cost basis and capital gain?
Thank you,
Higgins -- from Massachusetts