If I qualified for the maximum exclusion on the recent sale of my home, do I still have to list the amounts of the capital improvements done over the course of the years I owned it??? I received the 1099-S and my CPA is asking for all the improvements, dates, amounts. This was not an investment home, it was my personal home, lived in it for 2 of the recent 5 yrs., sold it for less than the allowed amount; didn't sell another home recently. Is there not an option to check off where we don't have to list all of the improvements information if we know we qualify for the capital gain exemption? or is it regular procedure to list all this info?
If your gain is less than $250,000 (or $500,000 if married filing jointly) without entering the improvements, there is no benefit or requirement to enter them, since raising your basis won't change your tax.
If you qualify for the home capital gain exclusion, and your capital gain without adding the improvements is already below the limit, then there's no need to list the improvements to be added to your cost basis.
So my understanding is if my income is below $60 grand, I qualify. What's the "home improvement" to my home or just selling the stock and having a profit?
@Rooie wrote:
So my understanding is if my income is below $60 grand, I qualify. What's the "home improvement" to my home or just selling the stock and having a profit?
Please post a new question with details specific to your situation. Qualify for what? Home improvement, but you mention stock. What are you asking.
@Rooie --
When you sell a stock, your cost basis is what you paid for the stock.
When you sell your home, your cost basis is what you paid for the home, plus the cost of any capital improvements (such as a room addition or a new roof) that you made to the home during your period of ownership.