How to capitalize gut renovation expenses into the cost basis of our property

I’m about to start the process of doing my taxes…we spent a lot on our renovation and it’s important for me that this amount is capitalized in the cost basis. Is this added as a sigle amount summing up all the expense or is does it need to be categorized (architect, GC, appliances, DOB fees, expeditor, etc)?

brooklyntoqueens

in Taxes 10 years and 1 month ago

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slopefarm | 10 years and 1 month ago

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Agree. get an accountant. Really important if this is a 2-family.

daveinbedstuy | 10 years and 1 month ago

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Not sure if all the fees can be capitalized. Certainly lawyer fees cannot. Really need an accountant to go through them.

no-permits | 10 years and 1 month ago

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don’t attempt this yourself. get an accountant.

daveinbedstuy | 10 years and 1 month ago

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For tax purposes, only the lump some is needed. You might want to consult an accountant as to which items can be capitalised and which expensed but basically it’s highly unliklely ever to be questioned, as are yearly expenses.