Keeping track of vacation property cost

When selling a vacation home, the gain on that property may be taxable in the future. It is important to keep track of the cost to acquire the property; the higher the documented cost, the lower the gain when the property is sold. It is also important to keep track of capital costs to the property, as they further increase the cost of the property. A capital cost is for a lasting improvement to the original condition of the property,
for example, replacing carpets with hardwood floors.

Close Menu