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Updated almost 7 years ago,
Tax questions when fixing and selling a house
Hi I have a couple of tax questions.
- I sold my primary residence last year, where I've both lived and rented out half the house for the last few years. Let's say my house depreciates by $10000 every year, but since I only rent out half the house, I can only deduct $5000 each year. When I sell my house, does the basis decrease by $10000 or $5000 every year?
- I had to spend a few months fixing up the house before I sold it. From what I understand, the repair expenses get added back to house basis price. But what about other expenses while I was fixing up the place and not living there nor renting it out? For example HOA, utilities, home insurance. Can I add these to the basis as well, as part of renovation/repair expenses, or do I deduct them somehow?
- I also bought another property in 2017 with the intent to rent, but I had to fix up the place in 2017. From what I understand, the repair/renovation expenses gets added to the house basis price when I sell the place in the future. What about other expenses? For example mortgage interests, property taxes, utilities, insurance, etc, all of which I can fully deduct from rental income if I was renting the place out. But since I haven't rented out the place in 2017 is there a way to deduct them?
Thanks,
Ray