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Roy, I was just about to post this yesterday, when the powers that be flipped the on-off switch on the board. Anyway -- here are my questions --

Roy -- I finally received my 1040 packet and started to review it for this year's taxes. Under the instructions for Sch D, the IRS states that if your capital gain on the sale of your home (with some qualifications) was less than $250k ($500k filing jointly), you don't even have to report the sale. Moreover, Form 2119 is now obsolete.

I am appalled. The IRS will actually trust a taxpayer and not require the filing of some form when a home is sold? Can this be so?

For my own records, I had started to fill out a 2119 when I sold my home last fall. I gathered that *all* improvements may be added into the purchase price (but only once) for the cost basis. Does this include replacing a failed furnace and/or air conditioner? Or a worn-out roof? How about exterior paint? If I can only charge once, may this be the last (& therefore the most expensive) replacement, or must it be the first time replaced? Even though I probably don't need this form, I still feel that I should have the records, just in case of the unthinkable.

Thanx, again, for your thoughts
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