@andys1027 wrote:
Got it! I only mentioned the HOA fees and the big changes in the rebuilt to add perspective and NOT expecting them to be deductible. So I am guessing that it comes down to: taking the original cost of the home (April 1985) of $67,740.00, adding improvements such as AC, furnace and hot water heater - subtract that from the gross sale price along with the $250,000 exclusion, cost for staging, and ceiling fans and any other allowable adjustments to come up with the total capital gain then taxed at 15%?
Basically, yes. However, if you are single, and use the standard deduction of $14,600, you won't pay any capital gains tax until your total income goes over $61,750. You haven't been clear on your gross income (you said your after tax income is about 49K). So it is possible, that part of the gains will be taxed at zero (to bring your taxable income up to $61,750), then 15% on the rest. So the most you will pay is 15% of $61,750, but it could be a little less.
Also, let Turbotax do the math. Enter your cost, selling price, and so forth, and let Turbotax subtract out the $250,000. If you try and subtract it first, the calculation will end up wrong.
