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Updated over 8 years ago on . Most recent reply
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Live in flip tax basis?
Quick question for the tax gurus. If you live in a house and sell it 1 year and 6 months later for $50,000 more than you paid for it (no rehab), you have to pay short term capital gains on the profit. Does your interest expenses and property taxes count towards your basis in the property? These have been deducted on an itemized personal tax return.
If you do NOT live in it, are the taxes and interest expenses now considered in the basis? Does living in it change anything? I might be overthinking it.
Thanks.