All Forum Posts by: Corbin S.

I'm building a new home near Larkspur Colorado.  I getting bids now for a summer 2022 build.  I'm looking for a framing crew for all wood construction.  I'm not looking for a general contractor so please don't contact me.  Any recommendations with contact information are appreciated.  

Ashish, the fire was almost a complete loss but they kept the skeleton, striped down to the studs.  All new exterior, electrical, plumbing, roof, furnace etc.  I purchased the home in March 1986 for $70,500 and used it as a second home.  Before the fire and over the years I have put maybe $20K into improvements that was destroyed.  The house is now worth approximately $425K when we sell.  I hope I've answered all your questions and appreciate your help.  

We had a fire at the house and have put $60K of our own money and $165K of insurance money into the home to repair it. When we sell the property, does the insurance money that was used to improve the home count towards our cost bases to limit our taxes? The insurance was paid to us, I hired and paid the contractor directly. I'm assuming no but need to ask.

Dave, thank you.  What about the insurance money that was paid to us and we paid the contractor.  Does that add to our cost bases?  

I'm new to this forum and appreciate your help.  I have a second home we have owned since the mid 80's.  I have two questions on a possible sale trying to avoid as much income tax as we can.  

1.  We had a fire at the house and have put $60K of our own money and $165K of insurance money into the home to repair it.  When we sell the property, does the insurance money that was used to improve the home count towards our cost bases to limit our taxes?  I'm assuming no but need to ask.

2.  We have purchased a vacant lot and plan to build a replacement second home after we sell this one.  Can we do a 1031 exchange and use that money to construct our new home?  I've heard about an "improvement Exchange" to construct a replacement property but I don't know how it works.

Thank you for your help.