The residential real estate market is surging in many areas. If you’re considering selling your principal home, keep in mind that you might owe taxes on the profit, especially if you’ve lived there a while. Here are two ways you may be able to reduce your taxable gain: 1) List the eligible costs when you purchased the home and the costs of qualified improvements you’ve made since then. Add the total to the home’s basis. 2) Subtract allowable closing costs from the net selling price you receive at closing. As you can see, keeping proper records of house-related expenditures as you incur them is vital, but the tax savings may be worth the effort. Contact the Cg Team with questions. © 2024