With Tax time here, I thought I'd share a tip on things you can Deduct and Minimize your possible Taxes.  If it's too late for your 2011 taxes, start doing it for your 2012 taxes!  

Maintenance on a principal residence, the house you live in, is not a deductible, BUT, Improvements can add to the basis which can reduce the gain in the sale. Improvements are easily identified if they add to the value of a home, prolong its useful life or adapt it to new uses.   Receipts and other proof, such as pictures, should be kept during ownership and for several years after the sale of the home.  

 

 

A simple strategy is to put documents that affect the basis of the home in one envelope. Any receipt for money spent on the home that isn't the house payment or utilities, goes into the envelope. Your tax advisor will be able to sort through them to determine which are the capital improvements.  

For more information on determining capital improvements, see IRS publication 523, and consult with your Tax Advisor.  

 

If you're thinking about Buying or Selling a Home in the Dallas/Ft Worth Metroplex or Lake Ray Hubbard area, please contact me to see how I can support you! I LOVE what I do & giving 100% is all I know!

 

2 Comments on Keep Track of Home Improvements to Help Lessen Your Taxes

JAN
27
2012
1,116,799 Points 101 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

anyone who replaced with "energy star" windows or doors may also be entitled to a tax credit. :)
11:39pm • #1
JAN
29
2012
154,987 Points 3 Featured Posts Outside Blog Attended Rain Camp

Awww yeah ... glad they're still offering this tax credit! Thanks Tammy!
11:08pm • #2

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Samantha Smith, d+b Real Estate Lake Ray Hubbard Realtor

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Rowlett, TX

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214.422.0729 www.SamIAmHouses.com

Address: Garland, Rowlett, Rockwall, Heath, Fate, Wylie, Sachse, Murphy, TX, 75089

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