My wife and I are purchasing our first house in a week or so. We're planning on doing some immediate remodel work.
After we live here for a few years we've talked about renting it out, maybe, maybe not.
I've heard that if we rent it, then sell it, we'll be taxed on the capital gain?
What of my remodeling can be added to the basis?
I'd like to keep a good record to preserve my options.
After we live here for a few years we've talked about renting it out, maybe, maybe not.
I've heard that if we rent it, then sell it, we'll be taxed on the capital gain?
What of my remodeling can be added to the basis?
- Tangibles like floors, paint, appliances, counters, etc?
- Intangibles like labor? What about my time?
I'd like to keep a good record to preserve my options.