Hello,
My wife, a US/Canada dual-citizen residing in Canada sold a rental property located in Florida in 2023.
The unit was completely renovated immediately before being sold.
couple of questions:
1- What is the correct way for handling the renovation cost prior to selling? Are they added as a capital expense or considered a expense as part of the disposition of the property or something else?
2- We don't expect the US tax returns to be filed until mid/late April. Given that she will owe money to the IRS on the capital gains, should she be making a payment in advance (I believe any taxes owed should be paid by end of march or else have to pay interest?) What is the best way to go about this?
Thank you
Reporting sale or rental property
Moderator: Mark T Serbinski CA CPA
Re: Reporting sale or rental property
1. The expenses are added to the cost basis.
2. Not a bad idea. The interest can be calculated back to the date of sale, but no harm paying some now.
2. Not a bad idea. The interest can be calculated back to the date of sale, but no harm paying some now.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
Re: Reporting sale or rental property
thank you @nelsona
what's a good approximation on tax owed? would 15% of capital gains be reasonable (would prefer to pay a little less than pay too much and wait/hope for a refund)?
what's a good approximation on tax owed? would 15% of capital gains be reasonable (would prefer to pay a little less than pay too much and wait/hope for a refund)?
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Re: Reporting sale or rental property
What a thought-provoking discussion on residential real estate management! Your insights truly resonate with the challenges many landlords face. I couldn't agree more with the importance of establishing clear communication channels with tenants. It's like they say, "Communication is key!" Transparency fosters trust and prevents misunderstandings down the road.
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- Posts: 4
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Re: Reporting sale or rental property
pppittpeter wrote:
> What a thought-provoking discussion on residential real estate management!
> Your insights truly resonate with the challenges many landlords face. I
> couldn't agree more with the importance of establishing clear communication
> channels with tenants. It's like they say, "Communication is
> key!" Transparency fosters trust and prevents misunderstandings down
> the road.
Regarding the question posed in the topic, I firmly believe that implementing a streamlined rental process can significantly alleviate the stress associated with property management like https://ramfeld.com/property-management/ . Embracing digital tools for rental applications and lease agreements can enhance efficiency and accuracy, saving both time and headaches for landlords and tenants alike.
I'd love to hear from other participants on their experiences and strategies in residential real estate management.
> What a thought-provoking discussion on residential real estate management!
> Your insights truly resonate with the challenges many landlords face. I
> couldn't agree more with the importance of establishing clear communication
> channels with tenants. It's like they say, "Communication is
> key!" Transparency fosters trust and prevents misunderstandings down
> the road.
Regarding the question posed in the topic, I firmly believe that implementing a streamlined rental process can significantly alleviate the stress associated with property management like https://ramfeld.com/property-management/ . Embracing digital tools for rental applications and lease agreements can enhance efficiency and accuracy, saving both time and headaches for landlords and tenants alike.
I'd love to hear from other participants on their experiences and strategies in residential real estate management.