is there any sort of IRS publication that details what gets added to the
cost of your home when calculating your cost basis?

what in particular i'm interested in: the deck wasn't sealed/stained, does
doing that count or is that normal routine maintenance?

thanks

On Thu, 16 Jun 2005 14:37:06 -0400, someone wrote:


what in particular i'm interested in: the deck wasn't sealed/stained, does
doing that count or is that normal routine maintenance?

I'd consider it maintenance, and not only that but it is probably
pretty petty as far as your total basis is concerned.


Reply to NG only - this e.mail address goes to a kill file.

I would say that provided the sealing/staining was done around the time
of installation of the deck, then it does get added to the cost basis
of the property. Certainly if you hired a contractor to do the job and
that was included in the job, it would most definitely be included in
the cost basis. So, if you get it done seperately, I would add it in.
Especially considering that the worse that could happen is they would
deny it during an audit someday when the property is sold. That is
very unlikely to happen. If you did it yourself, only the cost of the
materials is included, not labor. And follow on sealing every couple
years would be considered routine maint.

"a65" wrote:

is there any sort of IRS publication that details what gets added to the
cost of your home when calculating your cost basis?

what in particular i'm interested in: the deck wasn't sealed/stained, does
doing that count or is that normal routine maintenance?

Unless you are dealing with a very high end home, or some really nice
appreciation, cost basis is not a whole lot of use under the current tax scheme.

Especially not if you you are talking about the cost of a couple of gallons of
deck sealer (which wouldn't be an improvement anyway - it would be considered
routine maintenance unless included in the original cost of the deck).

On Thu, 16 Jun 2005 14:37:06 -0400, "a65" wrote:

is there any sort of IRS publication that details what gets added to the
cost of your home when calculating your cost basis?

IRS Pub 523 Selling Your Home:
http://www.irs.gov/formspubs/lists/0,,id=97819,00.html

what in particular i'm interested in: the deck wasn't sealed/stained, does
doing that count or is that normal routine maintenance?

Maintenance, doesn't add to basis, but can be an expense of sale if
done before selling.

--
Luke
__________________________________________________ ____________________
"Bush wanted to remove Saddam, through military action, justified by
the conjunction of terrorism and WMD. But the intelligence and facts
were being fixed around the policy."
-- The Downing Street Memo, July 23, 2002
http://www.downingstreetmemo.com

"Unless you are dealing with a very high end home, or some really nice
appreciation, cost basis is not a whole lot of use under the current
tax scheme. "

A lot depends on your marital status and area. The way real estate
prices are rising, a lot of people, especially single people, will hit
the limits in many areas before too long, even with average homes.
The exclusion is $250K for singles, $500K for couples. Here in central
NJ, the median home price is already over $300K with house prices
having doubled in less than a decade.