Comments on: I Sold Stock For Home Improvement, Now I Have A Huge Capital Gain Tax Liability. How Can I Reduce The Tax Due?

By: taxreff

taxreff — Thu, 31 Dec 2009 22:46:24 +0000

Unfortunately, the first answer to this thread is correct. The STCGs are taxable at ordinary rates, and the home improvements are not tax deductible.

By: nova_que

nova_que — Thu, 31 Dec 2009 16:33:37 +0000

You really need to scrutinize your deductions and make sure you are taking advantage of everything possible. Review schedule A for anything/everything you can (medical, charity, unreimbursed employee expenses).
Unfortunately, with short-term gains you will pay more to Uncle Sam.

By: jlf

jlf — Thu, 31 Dec 2009 09:35:14 +0000

Its too late now. Short term capital gains are taxable as ordinary income – didn’t you know that? Your renovations are not tax deductible either, though they might change your house cost basis when you eventually sell.