hi we bought a home 5 years ago for $134,000. We did a lot of repairs and remodeling. Our daughter has lived their rent free but now she wants to buy the house and we told her we would sell it for $160,000. What part will we have to count as income on our taxes? We are retired and live on social security and get a medical tax credit for our medical insurance premiums and do not want to go over our income amount. We live in Washington State. Can we count our remodeling repairs towards the difference in what we bought the house for and what we're selling it for and will we have to pay capital gains?
