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Delete Cross in the Assessment Of Condition Of Rental Property

Delete Cross in the Assessment Of Condition Of Rental Property

Aug 6th, 2022

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How to Delete Cross in the Assessment Of Condition Of Rental Property

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welcome back to our Channel clear Valley tax my name is Brian Kim Im a certified public accountants and today we are here to talk about the sale of a rental property so the full equation for calculating this out is the sales price minus cost basis will equal your gain okay so theres three pieces right the sales price is straightforward the gain is straightforward its the cost basis that trips up everybody or nearly everybody so were gonna break this down for you okay so you have sales price you have cost basis and you have your game so the sales price thats a very straightforward if you sold your property for 400,000 then your sales price is 400,000 straightforward theres no tricks it is what it is its very straightforward cost basis okay okay cost basis here okay these are the things Im gonna have to read this one off okay so cost basis is the purchase price of the home okay how much did you purchase the property for plus the closing costs of when you purchased the home okay s

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Got questions?

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What is the best example of normal wear and tear?

Examples of Normal Wear and Tear Worn or faded carpet. Scuff marks on hardwood and linoleum floors. Warped door frames and windows. Sun-faded blinds and curtains. Dirty or loose grout around floor tiles. Small scuffs on walls from door handles.

What is any normal tear and wear?

What is Normal Wear and Tear? Normal wear and tear generally refers to the expected deterioration of a unit caused by a tenants everyday use. This could include things like wobbly doorknobs, worn carpet, or small scratches on walls and flooring.

How do you identify wear and tear?

More examples of wear and tear are: Fading in color almost anywhere due to sun exposure. Several small nail holes per wall. Small staining on carpets (not due to pets) that can be cleaned with a steamer. A few small dents or scratches on hard flooring. Dust and dirt buildup on surfaces. Loose doorknobs.

What is an example of fair wear and tear?

Some examples of fair wear and tear are worn carpets, faded curtains, minor scuffs and scrapes on walls, worn keys and dirty windows.

What is classed as normal wear and tear in rental property?

Normal or fair wear and tear refers to gradual damage you would expect to see in a property over time. For example, damage to carpets, fixtures, and fittings is extremely difficult, if not impossible, to avoid over a period of months and years.

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