If you are one of the fortunate ones experiencing a significant increase in your legal primary residence’s value, you may be sitting on a ticking tax time bomb-according to Ron Lieber, a New York Times columnist.
Single homeowners with gains of more than $250,000.0k & married couples with a gain of more than $500,000.0k could ultimately owe the IRS as much as 23.8% on monies earned above those thresholds, plus local State &/or City taxes, when the decision is made that it is time to sell and you are sitting at the “Closing” table.
One way to offset & document the improvements & remodeling that you have done to your primary residence is to maintain meticulous records AND receipts. The savings that you may realize may be quite substantial.
To research the allowable expenses that are deductible under IRS guidelines please go to “Internal Revenue Service Publication 523: Selling Your Home” (Page 12)
Sourced: New York Times (06/06/2015) Ron Lieber