Fixing-Up Expenses

AAA

DEFINITION of 'Fixing-Up Expenses'

Any repair-related expenditures incurred during the process of preparing one's home for sale. This type of expense does not include major home improvements such the addition of a new room or swimming pool. Fixing-up expenses are not deducted outright, but are subtracted from the sale proceeds.

INVESTOPEDIA EXPLAINS 'Fixing-Up Expenses'

The Taxpayer Relief Act of 1997 has rendered the rules surrounding fixing-up expenses less important than they were previously. Since homeowners can now exclude the first $250,000 of the gain from the sale of their homes, the reduction in sale price from these expenses is generally meaningless.

RELATED TERMS
  1. Expense

    1. The economic costs that a business incurs through its operations ...
  2. Deduction

    Any item or expenditure subtracted from gross income to reduce ...
  3. Inflexible Expense

    An expense that cannot be easily eliminated by the firm or person ...
  4. Accessory Dwelling Unit (ADU)

    A legal and regulatory term for a secondary house or apartment ...
  5. American Taxpayer Relief Act Of ...

    A U.S. bill signed by President Obama on January 2, 2013, that ...
  6. Water Damage Insurance

    A type of protection provided in most homeowners insurance policies ...
Related Articles
  1. Home & Auto

    4 Overlooked Homeownership Costs

    Mortgage payments aren't the only expense. Find what else you'll be on the hook for.
  2. Fundamental Analysis

    The One-Time Expense Warning

    These income statement red flags may not spell a company's downfall. Learn why here.
  3. Home & Auto

    Will Your Home Remodel Pay Off?

    Some renovations will mean a bigger sale price on your home, while others will just cost you.
  4. Taxes

    Tax Deductions For Rental Property Owners

    Besides creating ongoing income and capital appreciation, real estate provides deductions that can reduce the income tax on your profits.
  5. Fundamental Analysis

    Accounting For Differences In Oil And Gas Accounting

    How a company accounts for its expenses affects how its net income and cash flow numbers are reported.
  6. The Affordable Care Act is the largest change to the tax code in 20 years that could affect you when you file that 2014 tax return next year.
    Taxes

    How Might The Affordable Care Act Affect You?

    The Affordable Care Act is the largest change to the tax code in 20 years that could affect you when you file that 2014 tax return next year.
  7. Home & Auto

    10 Questions You Forget to Ask When Buying a House

    If you are thinking about buying a home, you are not alone. According to the New York Times, more Americans are getting home-buying fever.
  8. What home improvements make their money back?
    Home & Auto

    Which Home Updates Tend to Make Back their Money?

    Do you want to revitalize your kitchen and bathroom this year? If you’re planning to sell your home, these rooms will be major points of interest and need to shine. Without spending a fortune ...
  9. Even the most enlightened citizen curses taxes, possibly while simultaneously acknowledging that they're the price of a civilized society.
    Taxes

    How The IRS Works: Functions & Audits

    Even the most enlightened citizen curses taxes, possibly while simultaneously acknowledging that they're the price of a civilized society.
  10. Taxes

    Tax Treatment Of Roth IRA Distributions

    Learn the requirements for withdrawing funds tax and penalty free.

You May Also Like

Hot Definitions
  1. Commodity

    1. A basic good used in commerce that is interchangeable with other commodities of the same type. Commodities are most often ...
  2. Deferred Revenue

    Advance payments or unearned revenue, recorded on the recipient's balance sheet as a liability, until the services have been ...
  3. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  4. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  5. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
  6. Special Administrative Region - SAR

    Unique geographical areas with a high degree of autonomy set up by the People's Republic of China. The Special Administrative ...
Trading Center