Sold a House and bought a house in 2024, Capital Gains?

[MRobinson305]

I sold my house in Florida of 35 years in 2024 and then bought another one. It is my understanding that I only get $250k credit toward the profit and I have to pay capital gains on the rest of it. I have done many renovations to the house over the years, but only have some of the receipts. I am also widowed, my spouse passed 8 years ago. What can i do to minimize the amount of capital gains taxes I will have to pay.

[KrisD15]

You may wish to speak to a local real estate attorney, since this is only a tax question forum but the first issue I see is your basis/value/cost.

If your husband passed 8 years ago and you both held the deed, you would "step-up" half the basis in the house to half the Fair Market Value on that date. 

Example, house purchased 100,000 and on the date of his passing it was valued at 500,000, your basis/value would be 300,000 (50,000 + 250,000)

If only your husband owned the house and you inherited it, you would get the full basis of 500,000.

You can add costs for major renovations, but not maintenance. 

You should have receipts if claiming those upgrades in case the IRS would require you provide them. 

Since it has been more than two years since he passed, you are limited to the 250,000 exclusion only. 

IRS Pub 523