Question

how to save money on capital gains from home sale

Forum|Forum|4 years ago
January 26, 2022
1 reply
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I plan to sell a home in 2022 and expect more than $250K gain as a single person. the house is my personal residence and not commercial or rental in anyway. What can I do to save taxes on the capital gain?

DaveF1006

If you made improvements to the house, you can add these to your cost basis to reduce your capital gains. Please review what are considered improvements in the following IRS publication 523. Also you can certain settlement costs on your closing statements when you first bought the house and when you sold the house.

Publication 523 list the following settlement costs that can be deducted.

• Abstract fees (abstract of title fees),

• Charges for installing utility services,

• Legal fees (including fees for the title search and preparing the sales contract and deed),

• Recording fees,

• Survey fees,

• Transfer or stamp taxes, and

• Owner's title insurance and realtor fees

To claim these costs. When you bought the house, you will add these to the basis of your house. For the recent settlement costs when you sold your home, you will subtract these from your proceeds. This will also reduce your capital gains.

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