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Can significant renovation expenses offset taxes on real estate investment properties if sold less than 1 year
By Tom | September 19, 2006
darhylp asked:
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?
Melissa
Topics: investment properties | 2 Comments »
September 21st, 2006 at 7:28 pm
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.
September 24th, 2006 at 1:45 pm
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.