erinm0717
Expert Alumni

Get your taxes done using TurboTax

Hi Amanda!  Happy to help with your questions today!  

1) This link has some great information on the expenses you can claim to decrease the capital gain on your home: https://www.irs.gov/publications/p523

You will want to scroll down to the basis adjustments section. Here is a list of costs that can be included:

  • Abstract fees (abstract of title fees),

  • Charges for installing utility services,

  • Legal fees (including fees for the title search and preparing the sales contract and deed),

  • Recording fees,

  • Survey fees,

  • Transfer or stamp taxes, and

  • Owner's title insurance

These are the fees that cannot be included: 

 

  • Fire insurance premiums,

  • Rent for occupancy of the house before closing,

  • Charges for utilities or other services related to occupancy of the house before closing,

  • Any fee or cost that you deducted as a moving expense (allowed for certain fees and costs before 1994),

  • Charges connected with getting a mortgage loan, such as:

    1. Mortgage insurance premiums (including funding fees connected with loans guaranteed by the Department of Veterans Affairs),

    2. Loan assumption fees,

    3. Cost of a credit report,

    4. Fee for an appraisal required by a lender, and

  • Fees for refinancing a mortgage.

2) Here is a great link which explains if you can deduction your moving expenses: https://ttlc.intuit.com/community/credits-and-deductions/help/can-i-deduct-my-moving-expenses/00/261...

"If you’re active-duty military and were ordered to move as the result of a PCS (permanent change of station), you can deduct your out-of-pocket moving expenses to your new post, including travel and lodging (but not meals). You cannot deduct moving expenses for which you were reimbursed, nor can you deduct moving expenses that were paid for by the government.

For everybody else, the moving expense deduction has been suspended for tax years 2018 through 2025 as a result of the Tax Cuts and Jobs Act that was signed into law in late December of 2017."

3) You can only claim one principal residence if you file together.  If you file married separately, you can each qualify for the $250K requirement if you meet the qualification rules.  Here is a great link which explains the qualifications: https://www.journalofaccountancy.com/issues/2002/oct/thehomesalegainexclusion.html

4) If your home is used for personal reasons, you cannot deduct improvements and repairs. I would keep track of the major improvements as you can use these to calculate your cost basis if you sell your home in the future.

Hope that helps!

 

 

 

 

 

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