Author Topic: Selling a house - capital gains  (Read 695 times)

Samwise

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Selling a house - capital gains
« on: February 16, 2019, 07:38:09 AM »
Hey all,
If someone is selling a house at a large profit that was bought long ago for a significantly cheaper price, there would be significant capital gains tax.  However,  the original cost of the house is increased by the fact of the cost of significant renovation on the house.  My question is, what options would you have if it's difficult to find the receipts and documentation for some of the work that was done -- any options to consider in this situation?  All thoughts and advice are appreciated!
Thank you,
Sam

walkwalkwalk

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Re: Selling a house - capital gains
« Reply #1 on: February 16, 2019, 08:30:12 AM »
You could play the audit lottery and hope they don't audit you, claiming the renovations as part of basis, or you could not claim the basis and pay higher capital gains, playing it on the safe side the first time around. Its up to you.

AMandM

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Re: Selling a house - capital gains
« Reply #2 on: February 19, 2019, 07:23:37 AM »
Any chance you could contact the contractors who did the work (assuming it was done by contractors) and see if they can create duplicate receipts?

Finances_With_Purpose

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Re: Selling a house - capital gains
« Reply #3 on: February 24, 2019, 12:59:15 AM »
Move into the house for 2+ years, then sell, no?