Capital Gains Tax and the Dishes You Left Behind

[GrumpyGuy]

Today I discovered something in the tax code that may be of interest to other satellite hobbyist / homeowners.

In certain situations, the Feds demand capital gains tax when you sell a home:rant: Some home-related expenditures can be used to reduce the taxable gains, but others are forbidden. For example, the cost of a new roof may qualify, but in most cases gutters and paint do not qualify.

In Publication 523 - Selling Your Home, the IRS provides a short list of home improvement expenses that may be used to reduce the tax (by "increasing the basis.")

I was surprised to find satellite dishes ARE on the approved list! ... next I was surprised to find OTA antennas are not.

Disclaimer - The above is nothing more than a layman's opinion of something he read on the internet. It is not tax advice.

Link to IRS Publication 523 for 2008 - Publication 523 (2008), Selling Your Home

 

[Dishman Dan]

Does this work the other way too???

When I drag a BUD home, is that considered taxable income???

 

[Mr Tony]

I was thinking the same thing

 

[primestar31]

Well, when you sell your house and leave a dish, tell the buyer that the house is FREE, if they pay you $200,000 (or whatever) for the DISH!

NO capital gains on dish sales!

That solves 2 problems..

 

[Pepper]

Doesn't matter, I would never leave something that important behind.

 

[Larobpra]

Well, when you sell your house and leave a dish, tell the buyer that the house is FREE, if they pay you $200,000 (or whatever) for the DISH!

NO capital gains on dish sales!

That solves 2 problems..

No capital gain on the first $250,000 for single or HOH filers and $500,000 for MFJ filers on the sale of your main home anyway.:up

 

[eurosport]

When I drag a BUD home, is that considered taxable income???

I hope not!
If so, let's hope it's at CURRENT used market value and not what was paid for it when new! LOL

 

[GrumpyGuy]

I took the all the FTA gear. I left the second-story roof mounted Dish 500 and 1000 ft. of coax (in the walls.) The increase in basis should save me enough to buy a couple of nice dual LNBFs. Not a bad trade off IMHO.

If I understand correctly, losses by calamity can be used to raise basis too, so Iceberg would be able to raise his basis on his townhouse by the value of his crushed and discarded T-90, just the same as if it were intact but left behind when/if he sells.

I don't however believe that dishes "sacrificed to the 4DTV gods" qualify.