Everyone I've talked too knows that finishing an attic, upgrading a bathroom, remodeling a kitchen or re-landscaping your yard can increase the value of your home. But very few know the ins and outs of capital improvements when it comes to lowering your tax bill when you sell their home.
As it stands now, rules will let you add capital improvement expenses to the cost basis of your home. Simply put, costs associated with improvements (whatever they may be) lowers total profit. Or as the IRS puts it, taxable income.
The best thing to do is to get in touch with your accountant and Realtor prior to putting your home on the market and have a firm strategy for netting the most profit (and paying the fewest taxes) as possible.
Here's a link to an article that sheds even more light on the tax saving opportunities that improving your home may provide when you decide to sell: http://bit.ly/9ohY3p Labels: Belmont Heights, Belmont Shore, California, capital gains, home improvements, Long Beach, Real Estate
# posted by
Dave Harbison @ 3:46 PM
