Yeah but profit is just how long you’ve lived there
Comment on This boomer couple would be hit with $700,000 tax bill if they sold their mansion
Gumbyyy@lemmy.world 3 weeks agoYeah, and the tax is only on the profit they make, not the entire selling price.
AA5B@lemmy.world 3 weeks ago
pneumaticFax@lemmy.world 3 weeks ago
And any capital improvements will lower that ‘profit’ too. So anything from a new water heater to a new roof can be used to raise the cost basis of the home lowering the tax paid.
AA5B@lemmy.world 3 weeks ago
Both of those examples are “regular maintenance” that aren’t legally capital improvements
At least as importantly , who tracks this stuff for the decades you might live in a house. I always thought this exemption was good in fairness alone: as someone just trying to live, I’m unlikely to keep the decades of paperwork needed for this, whereas a wealthy person with an accountant or business manager would