Cost basis of home improvements

Technical topics regarding tax preparation.
#1
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Client said someone (a CPA) told them there is a default rule that you can say you made improvements to your home of about $10K per year instead of keeping track of the actual improvements when you sell the home. Is that a thing?
 

#2
sjrcpa  
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I've never heard that.
 

#3
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No.

Also distinguish repairs from improvements. The former is not capitalized unless done as part of an improvement.
 

#4
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Yeah. I know. Thought it was weird that this CPA actually referred to this as the "default rule". Made it sound like a real thing.
 

#5
Nilodop  
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I heard it too, at the barber shop, along with the other default rule that all non-itemizers get a $300 deduction for contributions, whether or not they made them. I confirmed it at the pub next door.
 

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Don't forget about the automatic $500 noncash contribution for all itemizers.
 

#7
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And everyone uses their cellphone 100% for business.
 

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And their only automobile.
 

#9
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I once worked in an office with all women, other than me. They were nice enough to let me think I was in charge, but we all knew the reality. It was local government.

Several times, I would be dealing with a member of the public who had a problem. They would claim "the lady out front tolld me it was OK". My standard response was "there are 3 ladies out front, so you need to tell me which one, so I can fire them for giving you bad advice"

Worked every time.
 

#10
CathysTaxes  
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And they get the educator deduction even though they never bought anything for the classroom
Cathy
CathysTaxes
 

#11
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Ooooh good one.
 


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