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TOPIC: Basis in property
#162
Brian (User)
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Basis in property 1 Year, 8 Months ago Karma: 1  
I am trying to calculate the potential gain on the sale of my rental property. I know the original cost, the depreciation taken, etc. What else is included in the adjusted basis?
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steve (Moderator)
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Re:Basis in property 1 Year, 8 Months ago Karma: 3  
Selling expenses such as real estate sales commission, advertising and attorney fees can be added to you original cost basis for determining capital gain/loss.

In addition, capital improvements such as a new roof, driveway or complete replacement to the physicial structure (rather than just a repair) can also be added to basis.

If you started with vacant land, then costs such as engineering fees, survey fees, and demolition of a prior structure are costs which are added to the original land basis.

I would spreadsheet all capitalized costs, prior depreciation and then report on the tax return.

Good luck.
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