I have a primary residence I've had for only 6 months. I am under contract to sell with (after selling fees) a profit of $26K. I had no idea we were moving so we put some money into the home. I can not claim any of the exclusions...just deductions on my improvements.
How do I calculate that? I personally did all my own work. This includes floors. I have spent $2000 for flooring but in the fair market this $2000 (and my labor) would be much higher to have done. Maybe close to $10K. I have multiple renovations that I saved on by having myself complete. How to I determine an amount to use as a deduction. I guarantee the costs to accomplish what I did in my home (by another contractor) would exceed $26K.
