Discussion:Cost basis of decedent's house
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Discussion Forum Index --> Advanced Tax Questions --> Cost basis of decedent's house
Discussion Forum Index --> Tax Questions --> Cost basis of decedent's house
| 20 June 2008 | |
| i am preparing a form 1041 for a decedent who died in May 2007. The alternate valuation date was selected for the estate return. The decedent's house was sold during the six month period after death therefore it is valued in the estate at the sale price. During the period between date of death and the sale of the house approximately $9,000 in improvements and repairs were made-$3100 for a new oil tank; $2000 new roof; $4000 painting, power washing and other repairs. since the house was valued at the sale price I don't think these improvements would get added to the cost basis as the house probably would not have sold for the price it did if the improvements were not made. However the painting power washing and other repairs i believe could be deducted as repairs. Agree?? | |
| 20 June 2008 | |
| depends on whether you see them as an admin expense to preserve & maintain the asset or not.
Any arrangement is arguable. Is a painted house worth more than one needing to be painted? Is a repaired house worth more than one needing even minor repairs? | |
| 21 June 2008 | |
| Sounds like the painting is fix-up expense. If the other items are capital improvemnts, it's included in the sales price. | |
| 23 June 2008 | |
| Hi disagree the FMV of the house at sale would include all your "improvements" I would not OINK at adding anything. bye | |
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