I bought a house ( principle residence ) in 1988 for $100,000
I spent $110,000 on improvements to the property
I sold the house for $900, 000
my exemption ( single ) is $250, 000
my cost is $210, 000 total
my total net is $900,000-$250, 000-$260,000 =$410,000
my personal income ( retired ) is $35,000
are the two added together or taxed separately ?
thank you ,
