[GNC] House renovation Expense or Asset?

[Tony Vanson]

Thank you for your responses.
At this stage there are no taxation issues, such as capital gains, to take
into account as I'm living in S.E. Asia. I am just looking at a simplified
way of recording all expenses incurred in connection with the renovation.
I have an asset parent account set up as "House" and a sub-account to that
as "Renovation". I also have an expense account as "Home Repair". My
thoughts are that anything spent on Renovation adds to the asset and is
technically not an expense to be recorded as Home Repair? Am I correct on
this?
Cheers

On Sat, May 12, 2018 at 4:35 AM, Mike or Penny Novack <
stepbystepfarm at dialup4less.com> wrote:

> On 5/11/2018 1:21 PM, Tony Vanson wrote:
>
> I assume that when all the construction is finished, the total cost could
>> be assumed to be treated as an asset increase to the value of the house?
>> In this instance, would all additional expenses occurring during
>> construction be treated as a debit on my bank account but a credit as an
>> asset increase?
>> I would really appreciate some advice from any of the many knowledgeable
>> users on this forum.
>>
>> Correct, with the caveat that while we are competent to tell you HOW to
> do things using gnucash, and while many of us KNOW the the correct answer,
> we do not hold the qualifications to give accounting/tax advice of this
> sort.  At least I do not.
>
> Michael D Novack
>
> PS -- Do you understand  WHY this is a tax issue? Again speaking as an
> "amateur", living expenses are not deductible, maintenance expenses are not
> deductible, but capital improvement expenses eventually ARE (in effect)
> deductible from the capital gain which may result when you sell the house.
> Raising the basis reduces the gain.
>
> --
> There is no possibility of social justice on a dead planet except the
> equality of the grave.
>
>
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-- 
*Tony Vanson*

*The older I get,*
*the better I was*