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. Deduction

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

    1. The economic costs that a business incurs through its operations ...
  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 FAQS
  1. Do mortgage escrow accounts earn interest?

    A bank is not required to pay interest on any escrow accounts (also mortgage impound accounts) it holds for its customers. ... Read Full Answer >>
  2. Is it true that you can sell your home and not pay capital gains tax?

    It is true in most cases. When you sell your home, the capital gains on the sale are exempt from capital gains tax. Based ... Read Full Answer >>
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. Personal Finance

    Affordable Ways For Upgrading Your Home

    Upgrading your home doesn’t have to be an expensive chore. Here we give you 8 affordable ways to increase its appeal.
  7. Home & Auto

    Will Downsizing Your Home Pay Off?

    A little math can help you determine whether downsizing your home is worth it. It involves subtracting the costs of such a transition from expected gains.
  8. Home & Auto

    Cost Breakdown Of A Bathroom Remodeling Project

    When figuring out the size of your budget for your bathroom remodeling project, consider whether you'll hire a pro, and the type of purchases you'll make.
  9. Home & Auto

    Low-Cost Curb Appeal Projects For Your Front Yard

    Some low-cost improvements to your home's exterior and front yard could increase its curb appeal and ensure a great first impression on buyers.
  10. Home & Auto

    Reduce Energy Costs By Making These Adjustments

    There are several ways you can reduce energy costs. These techniques range from minor tweaks to major renovations.

You May Also Like

Hot Definitions
  1. Inbound Cash Flow

    Any currency that a company or individual receives through conducting a transaction with another party. Inbound cash flow ...
  2. Social Security

    A United States federal program of social insurance and benefits developed in 1935. The Social Security program's benefits ...
  3. American Dream

    The belief that anyone, regardless of where they were born or what class they were born into, can attain their own version ...
  4. Multicurrency Note Facility

    A credit facility that finances short- to medium-term Euro notes. Multicurrency note facilities are denominated in many currencies. ...
  5. National Currency

    The currency or legal tender issued by a nation's central bank or monetary authority. The national currency of a nation is ...
  6. Treasury Yield

    The return on investment, expressed as a percentage, on the debt obligations of the U.S. government. Treasuries are considered ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!