Question
Capital gains on sale of home & subsequent expenses paid in a later year
My client sold her home in 2022, with a capital gain. Unknown to me they signed a separate repair addendum and $45,000, paid by them, was placed in escrow for a well, pump, etc. replacement. This was not included in the sales expenses in 2022. Now, the well, etc. was replaced in 2024 and my client received some of the money back. Do I amend 2022 for the actual cost of the well, pump, etc. or do I report these costs as a capital loss on 2024 tax return?
