Welcome Guest. Register Now!  


Itemized Deductions Schedule-A


 
 
LinkBack Thread Tools Search this Thread Display Modes
Prev Previous Post   Next Post Next
  #1 (permalink)  
Old 02-27-2018, 12:57 PM
Junior Member
 
Join Date: Feb 2018
Posts: 1
Capital Gains on Sale of a Second Home

If a second home is sold, tax must be paid on any positive amount resulting from the sale price less the original base price.

If the home in question was purchased, for example, in 2001, and had major improvements made, it is my understanding that these improvements would add to the base price.

If the home in question then suffers a severe amount of damage (e.g., from flooding) that is covered by insurance, this, basically, makes the person insured "whole", so there is no change to the base price established when improvements were made. Is this a correct assumption?

If the insured then totally renovates the property, is the cost of the renovations added to the original base price of the home resulting in a new base price?



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
 


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Capital gains on sale of second home srschreuder Capital Gains 1 12-09-2017 01:14 AM
Home Sale / Capital Gains Tax? dusabrive Capital Gains 1 06-22-2017 07:31 PM
Capital gains tax on home sale fortyniners Capital Gains 3 05-12-2017 05:00 AM
Need help with 0% Capital Gains Rate on Sale of Home Klaus For 2012 1 10-16-2013 10:02 AM
Capital Gains on home sale jpegg Capital Gains 1 02-25-2013 02:35 AM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning