What Gets Overlooked When Selling?

Did you know you can up the basis in your house to help reduce your profit calculation at the time of sale? For example, one of our accountants said the following:

Items that increase the basis of a home:

• Significant improvements, like kitchen renovations, wood/LVP flooring or changing out windows

• Additions to the home, such as adding solar or charging for EV

When selling a home, these items are deductible as seller expenses:

• Painting, landscaping and any home repairs

• Replacing carpet to sell a home would reduce the gain

  • If you did this earlier, it would fall under personal wear and tear

• The same goes if you replace appliances and heaters — if you do this specifically to sell your home, it will reduce the gain

• Warranties purchased for the buyer of the home

Expenses that are also deductible to reduce gain:

• The closing costs associated with title fees and commissions

• Any fees for attorneys hired to help in the process