But that giant home-sale exclusion might not be big enough anymore. Due to skyrocketing real-estate appreciation in recent years, you may still have a king-size tax to pay when you finally sell your castle.
Strategy: Keep meticulous records of your home-related improvement costs. Those expenses increase your tax basis for home-sale purposes (see box below). So, when you finally do sell your home, the higher basis reduces the taxable amount of the gain … possibly to zero.
Without detailed records, you’re just taking a shot in the dark at your actual basis. Make sure you document qualified expenses from year to year.
Here’s the whole story: If you’ve owned and used your home as your principal residence...(register to read more)
- Small Business Tax Deduction Strategies No matches