My mom purchased a little fixer paying under 100g's, over 10yrs she put about 20g's into the house. Can she recoup in this confusing?

Asked by truthbringsrest, Sacramento, CA Sat Nov 24, 2012

current market?

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5
Brenda McLau…, Agent, Chico, CA
Sat Dec 22, 2012
If you have lived in the house 2 out of the last 5 years there is no tax on the gain unless you go over a threshold amount. You should talk to your accountant about the tax on that which will depend on your income and filing status and amount of gain on the house. If this is an investment property not lived in that is where you add all the cost in the purchase ,sell and what was put into the house to upgrade or do major repairs to come up with the cost of the property that is subtracted from the sold price. That could be a gain or loss.
0 votes
Brenda McLau…, Agent, Chico, CA
Sat Dec 22, 2012
When sells the house the base price for capital gains or 1031 deferred tax exchange purposes, she adds the purchase price of the house plus the cost of the purchase and any cost in getting the house upgraded. The is the cost of the house. That is subtracted from the amount of the purchase. The balance left over less cost of the sell is the gain.
0 votes
The Medford…, Agent, Fremont, CA
Sun Nov 25, 2012
The Sacramento market has heated up dramatically. Even with the decline of the past few years, we’re back in a seller’s market and she should be able come out ahead. As suggested below, contact three local Realtors and have each of them do a CMA to give your mom an idea of current values.
0 votes
Anna M Brocco, Agent, Williston Park, NY
Sat Nov 24, 2012
Depends; therefore why not consider inviting a few local agents from different realty companies and ask for a cma, comparative market analysis; see what the data suggests, ask opinions and go from there...
0 votes
John Arendsen, Agent, Leucadia, CA
Sat Nov 24, 2012
That's a pretty open ended question. A lot depends on the location, age of the home,average days on the market, etc.
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