selling home, form 8949 column E or G improvements?

Question

so I have a 2nd, vacation home I sold and made a bit of money.   to the tune of $130k if I go with the gross selling price subtracting the buy price.   However, I had to pay the realtor $12,000 to sell the house in commission, and I redid most of the house, new kitchen, bathrooms, carpeting, even the furniture that I bought and was included int the sale.  How do I get credit for these expenses and where do they go in the form:

for the record:

realtors fee:  $12,000
new kitchen:   25,000
bathrooms:     25,000 
carpeting:         4,000
furniture           10,000

ref: 
from the instructions of form 8949 column E:

Adjustments to basis. Before you can figure any gain or loss on a sale, exchange, or other disposition of property, you usually must make certain adjustments (increases and decreases) to the basis of the property. Increase the basis of your property by capital improvements.

Bostonian In MO · Accepted Answer

Furniture does not increase the basis of your home.  You must break out the sale of personal property from the sale of the real property.  If the contract was drawn up properly, this should have been included as a separate sale and should be reflected as such on the settlement sheet.

Major remodeling such as the kitchen, bathrooms, and carpeting do qualify as adjustments to your basis.

The realtor's fee is a cost of sale that reduces the proceeds from the sale.  See the Form 8949 instructions http://www.irs.gov/pub/irs-pdf/i8949.pdf page 5 for how to handle this and report the amount in column e and the code for column f.

? · Answer

Increase the basis of your property by capital improvements.
Hope that you find the above enclosed information useful. 03/24/2014

Anonymous · Answer

If the house title is in your name and your husbands name- it will take the two of you to sell the house- because you both signed on the mortgage. If it was only you, then no, you do not need him. But you will need him though when you sell and when it sells the two of you, will have to go down and do the closing papers- just like the two of you did when you bought the house

Trending News

selling home, form 8949 column E or G improvements?

3 Answers