section 1031 exchange

Forum|Forum|1 year ago
January 8, 2025
1 reply
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I will have approx 9200 in fix up expenses on house I am selling in an exchange, carpet, appliance repair, building inspection, roof repairs, misc stuff, where do I report them?

RobertB4444

They will be reported as part of the "cost of sale" in the exchange. Because you are doing a 1031 exchange all elements of cost of sale simply add to your basis in the exchange and are not deductible at the current time.

@rohnnk

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rohnnkAuthor

"they will be added to the basis..."? how bout the re commission and other selling expenses?? by adding to the basis they become deductible by being subtracted from the gross sales price.

my main concern is that these items have been paid with a credit card that cant be paid with exchange proceeds at closing, surely there must be a way

RobertB4444

No. Unless the property that you are exchanging is commercial or a rental property then expenses associated with the sale become part of the basis in the sale and are not deductible at the current time.

@rohnnk

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