Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Young and Older Folk Portfolio -- Ignore unavailable to you. Want to Upgrade?

To: Diddywahdiddy who wrote (22012)	11/6/2025 10:50:46 AM
From: Chairo Kiisu Ichiro	5 Recommendations Recommended By agniv Diddywahdiddy luvdividends stockpickeron The Beard Respond to of 23623

[ Boy, did this open my eyes and taught me that some of our prior home improvements were covered by a HELOC, and I should have taken advantage of that...and some of the items that I was thinking might be, are not qualified as deductible. ] => Understood. Could have used HELOC to fund some of the major capital improvements to the farm[1], but decided to avoid such and instead use cash-flow and savings -- which took longer, but also side-stepped Uncle's scrutiny, review, and approval. Consider that a fair exchange. However, others will, for various reasons, choose to do differently. Best wishes, Kiisu 1. Paid off the farm mortgage in less than 4 years. After which: added new roads (required road base and culverts) drilled a 350' well and built a well house improved the electrical system (buried some of the electrical mains, added new circuits and five new breaker boxes) re-roofed the farmhouse with sheet steel, added a 10x40 covered porch, and covered sidewalks added a new 24x36 steel building and expanded the original steel garage by more than 3x added a 14x40 steel shelter for a RV/trailer. To date, total cost of major improvements[A] exceeds 130% of the farm's purchase price. --- A. Does not include the cost of farm equipment (multiple tractors and attachments), fences, gates, or temporary/small buildings.

To: Diddywahdiddy who wrote (22012)	11/7/2025 6:49:00 AM
From: cemanuel	2 Recommendations Recommended By cajman1 Diddywahdiddy Respond to of 23623

The improvement/maintenance HELOC rules are largely the same as they are for what you can include as improvement expenses when calculating capital gains when selling. Ever since I bought my place I've filed every receipt for anything that's gone into my place. I know there will be a lot of sorting when the time comes. New roofs on my older barns won't count while putting fence or paying a contractor to improve drainage up likely will (my home place is not listed as part of my real estate business). When looking at this aspect the other important thing to remember is that mortgage (and HELOC if used for improvements) principle paid is a legit expense but interest is not.