Can significant renovation expenses offset taxes on real estate investment properties if sold less than 1 year
Wednesday, October 28th, 2009 at
8:31 am
example: purchased for 70,000. renovation costs of 7,000. sales price of 125,000 six months later. If I hold this property longer than one year, will this make a difference?
Sell and Rent Back
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Tagged with: Real Estate Investment • Real Estate Investment Properties • Renovation Costs • Taxes
Filed under: property renovation
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Taxes are stagnant and not subject to much negotiation. You can appeal the assessed value, or whatever rate applies, but you have a better chance of hitting the lottery.
RE taxes are about 1% of market value. I see no need to be concerned.
YOUR capital gains can be offset by
investing in other poor quality RE which you intend to fix or by
starting a business and having
research and development costs.