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The hardest part of estimating the value of property is finding comparables. To determine the value, other recently sold properties need to be looked at.

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Is electrical wiring a leasehold improvement?

Yes, electrical wiring can be considered a leasehold improvement if it is installed in a leased space and enhances the functionality or value of the property. Leasehold improvements are modifications made to a rental property by the tenant to fit their specific needs. Since electrical wiring is typically part of the property's infrastructure, it qualifies as an improvement that remains with the property after the lease ends.


How does the basis of purchased property determined?

The basis of purchased property is typically determined by the purchase price, which includes the amount paid for the property plus any associated costs, such as closing costs, legal fees, and certain improvements made to the property. Additionally, any debt assumed or liabilities taken on as part of the purchase may also be included in the basis. Adjustments can be made for depreciation or any other factors affecting the property's value over time. This basis is essential for calculating capital gains or losses when the property is eventually sold.


Is a Appraisal Fee a selling expense?

An appraisal fee is typically considered a closing cost rather than a selling expense. It is incurred to assess the value of a property and is often paid by the buyer or lender as part of the mortgage process. While it may be associated with the sale of a property, it does not fall under the category of expenses directly related to selling, such as agent commissions or marketing costs.


Are the property taxes part of CAM chrarges to the tenants?

See linked related question:


Is painting a leasehold improvement?

Painting can be considered as repairs and maintenance as it is part of maintaining the property.

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