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Selling your principal residence

In reviewing Publication 523, I noted that "selling expenses" are deducted from selling price before determining the amount realized from the sale. Selling expenses are specified as commissions, advertising costs, legal fees and loan charges paid by the seller.

I seem to remember that "fix-up" expenses immediately prior to sale were deductible at one time, but that has apparently changed and now those costs (painting, repairs, etc.) are no longer deductible.

Does anyone disagree with this?

(I realize that for some, this doesn't matter because they qualify for the residential exclusion of gain and it is sufficient. For purposes of this question, please assume the person either does not qualify for the exclusion or that they exceed the exclusion allowance.)

-HW "Skip" Weldon Columbia, SC

Reply to
HW "Skip" Weldon
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I read it same as you did

"Repairs. These maintain your home in good condition but do not add to its value or prolong its life. You do not add their cost to the basis of your property."

"Repainting your house inside or outside, fixing your gutters or floors, repairing leaks or plastering, and replacing broken window panes are examples of repairs."

I thought, some time back, that these were part of selling expense, but that may have been just for rental property. JOE

Reply to
joetaxpayer

I don't see the underlying support for this, but it sounds good to me:

"Real estate broker's commissions, title insurance, legal fees, advertising costs, administrative costs, and inspection fees are all considered selling costs. In addition, the IRS recognizes that costs ordinarily attributed to decorating or repairs -- painting, wallpapering, planting flowers, maintenance, and the like -- are also selling costs if you complete them within 90 days of your sale and with the intention of making the home more saleable."

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Reply to
Gil Faver

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