sale of primary home

[Bello]

we have a very large profit after deducting the following:

500,00 marriage deduction

cost of sale

capital improvements

original cost

any other suggestions?

[rjs]

Did you sell your home in 2022 or in 2023. If it was in 2022, it's too late to do anything to reduce the tax. Use some of the "very large profit" to pay the tax that you owe.

If you sold your home in 2023, and you own stock or other investments that have declined in value, sell them in 2023. The investment losses will offset some of the profit on the home.

[Critter-3]

Purchase price + cost to BUY + cost to sell + improvements = cost basis

Sales price - cost basis = gross  profit  less exclusion allowed =  net taxable profit

[Opus 17]

The list of allowable adjustments to basis is in publication 523.  You may want to review it to make sure you did not miss any adjustments.

https://www.irs.gov/forms-pubs/about-publication-523

If this occurred in 2023, you need to make estimated tax payments to avoid an underpayment penalty.  Pay at least 2/4th of the extra tax you expect to owe right away, 1/4 before September 15, and 1/4 before January 15, 2024.