Also include the cost of improvements...
....If you've made substantial improvements to the property, (e.g., renovations, new HVAC, new roof, etc), that cost can be added to your purchase price to come up with your "basis", which is then subtracted from your sales price, to determine what your gain, if any, is.
Example: original purchase price is $500K. You put in a new kitchen for $50K and a new roof for $20K. Your "basis", (cost), for tax purposes is $570K. You now sell the house for $600K. Your gain on the sale is $30K. You would obviously need all the receipts or contracts for the work done to substantiate the basis. (I assume this is still allowed, as it was in 2019 when we last sold a home).
Note: consult an accountant / tax professional for proper advice!
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