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Capital Gains Questions

Discussion in 'Reality Check' started by Wayne, Oct 13, 2022.

  1. Wayne

    Wayne
    [OP]
    1%er

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    Hey all,

    Disclaimer: I will get proper final advice when time comes but trying to budget roughly for my parents. My parents are selling their rental house.

    The adjusted cost base is $100k (value when it changed usage from primary residence to rental) and let's say we sell it for $160k, the general capital gains formula states they would have capital gains of:

    ($160k-$100k) = $60k / 2 = $30k

    So the $30k gets added to their income and they pay tax on all that.

    My question is I know some expenses can come out of the $160k, but not sure what, can the $25k in Reno's to put it up for sale be deducted? I assume the legal fees and commission can.
     
    Last edited: Oct 13, 2022

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