Keep Track of your Home Improvements
In these days of deflated home values, it is hard to think that we will ever make a profit on our homes when we one day sell them. However, that shouldn’t stop you from keeping receipts from major improvements you make to your home as they increase the basis at which the taxable gain is determined. While the IRS has been very kind to homeowners in allowing single taxpayer to exclude the first $250,000 in capital gains and married filing jointly taxpayers can exclude up to $500,000 in profit from the sale of a primary residence, that loophole may not exist forever. So save those home improvement receipts!
Stuart Steinberg, CPA, MBA has owned a strategic tax planning practice on the North Shore for 23 years. Please feel free to contact him anytime and let Erock Tax take care of you!