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Is the home your primary residence (lived in any 24 months out of the last 5 years)?
Hi there! This was secondary we kept for over 10 years
OK, then you can certainly deduct all selling expenses ...
Sales commissions and other legitimate selling costs (from the gain)
I do know that.
Also, you basis in the property can be adjusted up fpr improvemens to the property
How about improvements, updates.
Do I have to provide documents?
adds to basis, therefore lessening gain
It would be good to document in any way you can, in the event of an audit
but this is very common
no flags gere
What is a typical deduction allowed over the years?
what do you mean by "no flags gere?"
Nothing atypical, out of the ordinary
One the second questions?
sorry for the typo... ON your other question ....
You need simply to add to the basis improvements you made
Is there a IRS document I can study?
That one's all pover the board
some add bathrooms and decks
some do no more than maybe update cabinets
Sure, let me get that for you
lets say you bought for 100,000 and sell for 200,000
but added a deck for 20,000 ... now you have an 80,000 (rather than a 100,000) gain
and remember this is capital gains not ordinary income, so tax rate will not be as high
Any other remark?
I thnk that's about it 1. It's capital gains , 2. improvements add to basis, 3. selling costs subtract from sales price