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. 4 Overlooked Homeownership Costs
    Home & Auto

    4 Overlooked Homeownership Costs

  2. The One-Time Expense Warning
    Fundamental Analysis

    The One-Time Expense Warning

  3. Will Your Home Remodel Pay Off?
    Home & Auto

    Will Your Home Remodel Pay Off?

  4. Tax Deductions For Rental Property Owners
    Taxes

    Tax Deductions For Rental Property Owners

Hot Definitions
  1. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  2. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  3. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  4. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  5. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  6. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
Trading Center