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Author: yFool One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121061  
Subject: home improvements Date: 1/31/2006 1:50 PM
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hello
i guess this is a 2 part question:
1. should i keep track of home improvement costs so that they can increase the cost basis of my home for sale in the distant future? (one post suggested it's not worth while since the first $500K of capital gains is not taxed, although looking long term i might hope to reach that level)

2. if i should, can anyone point me to a good list or definition of what can be included. eg, painting my house exterior/interior, kitchen remodel, new roof, new patio and water drainage, new floors...plumbing repairs, major landscaping, minor landscaping--putting sprinklers in, repairing sprinkler

thanks

-bill
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Author: foolazis Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 83240 of 121061
Subject: Re: home improvements Date: 1/31/2006 2:35 PM
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1. should i keep track of home improvement costs so that they can increase the cost basis of my home for sale in the distant future? (one post suggested it's not worth while since the first $500K of capital gains is not taxed, although looking long term i might hope to reach that level)

I do anyway. You never know how long you may live in your house.

foolazis


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Author: irasmilo Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 83241 of 121061
Subject: Re: home improvements Date: 1/31/2006 2:45 PM
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hello
i guess this is a 2 part question:
1. should i keep track of home improvement costs so that they can increase the cost basis of my home for sale in the distant future? (one post suggested it's not worth while since the first $500K of capital gains is not taxed, although looking long term i might hope to reach that level)


Yes, you should. You never know when the law may change again. The rules on principal residence sales have changed several times in the last decade. You also never know when your circumstances may change. You could end up with two residences and switch primary residences before you sell this one and find at the time of sale that you no longer meet the 2 in 5 use rule. What would you do then if you didn't track your improvements?

2. if i should, can anyone point me to a good list or definition of what can be included. eg, painting my house exterior/interior, kitchen remodel, new roof, new patio and water drainage, new floors...plumbing repairs, major landscaping, minor landscaping--putting sprinklers in, repairing sprinkler

IRS Pub. 523, Selling Your Home, www.irs.gov/pub/irs-pdf/p523.pdf is a good start.

Ira


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Author: yFool One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 83276 of 121061
Subject: Re: home improvements Date: 2/1/2006 2:40 AM
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>IRS Pub. 523, Selling Your Home, www.irs.gov/pub/irs-pdf/p523.pdf is a good start.

perfect
thanks

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