Most people know you can shelter 250k as a single person and 500k as a married couple but do people realize you also get to up the basis in the house to help reduce your profit calculation at the time of sale? For example, my accountant said the following:
Significant improvements include kitchen renovations, wood/LVP flooring, changing out windows …
Additions to the home, such as adding solar, charging for EV …etc
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.
The closing costs associated with title fees and commissions.
Any fees for attorneys hired to help in the process.
DISCLAIMER: CHECK WITH YOUR OWN ACCOUNTANT BEFORE MAKING ANY FINANCIAL DECISIONS. HATCH DENVER REALTY DOES NOT CLAIM TO HAVE FINANCIAL EXPERTISE AND IS NOT DISPENSING FINANCIAL ADVICE.