Hi folks, I’ve checked online and my tax advisor, but just wanted to double check here since I have heard some conflicting advice.
We are selling our house in CA where we lived last 6 years (primary residence). We spend money renovating when we bought it and over the years.
Then we spent additional money in the last 90 days before the selling to improve the condition of the house.
I understand that I will not be taxed on the first $500K of profit. And for the remaining, for federal I will pay the capital gains, long-term tax and full California tax.
I know I can definitely deduct what I spent in the last 90 days to improve the house, But what about renovations we have done before that? Is any of that deductible from the gains ?
Is there anything else I should look out for to reduce the taxes?
Thanks!
submitted by /u/verystrangeusername
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Hi folks, I’ve checked online and my tax advisor, but just wanted to double check here since I have heard some conflicting advice. We are selling our house in CA where we lived last 6 years (primary residence). We spend money renovating when we bought it and over the years. Then we spent additional money in the last 90 days before the selling to improve the condition of the house. I understand that I will not be taxed on the first $500K of profit. And for the remaining, for federal I will pay the capital gains, long-term tax and full California tax. I know I can definitely deduct what I spent in the last 90 days to improve the house, But what about renovations we have done before that? Is any of that deductible from the gains ? Is there anything else I should look out for to reduce the taxes? Thanks! submitted by /u/verystrangeusername [link] [comments]
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