I understand that the maximum exclusion on a capital gains
associated with the sale of one's primary residence is $500K for married couples filing
jointly if we meet all conditions (e.g., owned home more than 2 years a primary residence, etc.).
I'm interested in understanding what types of costs associated with the ownership and/or sale of our house can be deduced from the capital gains on the sale of our home to reduce our capital gains tax liability
on the gains above $500K.
For instance, I understand that costs associated with "improvements to one's home" can be deducted. Also, costs associated with the sale of one's home - the realtor's fees. Are the attorney fees associated with title search/transfer tax
deductable against our gains?
I've heard that "routine maintenance costs" are not deductable.
I'm unclear as to whether costs associated with making repairs, painting the home in preparation
for sale could be deducted from our capital gains in order to reduce our tax liability?
I look forward to your reponse. Should you have need clarification on my question, please don't hesitate to contact me [email protected]