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 picture121
Joined: 21 Sep 2008
Posts: 7
6.13 Dollars($)
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 Posted: Mon Sep 22, 2008 8:10 pm Post subject: Can you claim improvements / renovations on primary residenc |
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| We just purchased a home in 4/08. Made about 60K in renovations/improvements. Home is primary residence, not being rented. How much or what can be claimed? Married; combined income $160K+; 1 dependent. Also, what can we claim from the closing? Any info. is appreciated. |
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smithsussane
Joined: 18 Sep 2008
Posts: 3738
Location: Alaska
561.45 Dollars($)
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| Posted: Mon Sep 22, 2008 9:45 pm Post subject: |
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Hi picture121!
Welcome to the forums!
If a property is brought for renovation and selling then CGT (capital gains tax) will not apply. However, if there are any profits, then it will be subject to Income Tax as it will be considered as a trade. But if you use the property as a primary residence then CGT will apply on it.
Feel free to ask if you have further queries.
Sussane. |
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Annie
Guest
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| Posted: Thu Oct 02, 2008 3:37 am Post subject: |
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| Yes, CGT can apply if its a primary residence. While selling, if there is a profit, then it will be taxed |
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