AboutGlenn D Schnabel Expertise I can answer most federal individual income tax questions.
I can not provide legal advise.
Experience I have worked for a CPA firm for over 11 years.
I have worked in private as well as government
I have recently been running a tax preparation office, mainly focusing on
individual income taxes
Organizations I have been affiliated with managing condo associations and as a member of a coalition to educate condo owners as to their rights and responsibilities.
Education/Credentials I have my B.S.B.A in Business Administration . Concentration in Accounting
I have gone to yearly tax seminars and have tried to keep up with the
evolving tax changes
Awards and Honors Over my years I have received local awards for contributions to worthy
organizations.
Past/Present Clients This, of course remains confidential
Question my sisters and I just sold my mom's house, she went into a nursing home. She signed the house over to us 3 girls around 20 years ago. Now we just sold it, gave some money from my mom's part (she had lifetime living rights to the house) to medicaid and split the rest 3 ways. My question is are we allowed to deduct all the improvements that were made on the house for the 60 yrs my mom lived there off of our profit? I have been told yes, even though we were on the dead for the 20 yrs that we can still take the deduction. Is this right? WE have no papers on what was done, they didn't keep that stuff. My sister was told that deducting around $60,000 for the 60 years was reasonable and we could split that 3 ways, therefore $20,000 off the amount we each made. Thanks, Debbie
Answer Debbie,
I would suggest that you document a chronology of what was done in the house which is deemed improvements. Ordinary repairs would not qualify,
As a general rule, people can easy spend $60,000 over the lifetime.
I would not necessarily use $1,000 a year for 60 years. I would set up estimates for the work done. If questioned, you would have to provide documentation
