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Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 3593
Experience:  18+ years of experience in tax preparation; 25+ years of experience as a real estate/corporate paralegal.
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What percentage of your sale price can be reasonable as a deduction

Customer Question

What percentage of your sale price can be reasonable as a deduction for capitol improvements. I owned a home for 40+ years and didn't save all the receipts. I don't want to trigger an audit so there must be some percentage that stays under the radar
Submitted: 2 years ago.
Category: Tax
Expert:  Barbara replied 2 years ago.
Welcome to Just Answer. My name is ***** ***** I will be happy to assist you today.Unfortunately, there is no "percentage that stays under the radar." Use your best estimate to include capital improvements made to the property to add to your original basis (what you paid for the home).Also, please be aware that if the property is your primary residence and you have owned and lived in the home for 2 of the 5 years immediately preceding the sale, you can exclude up to $250,000 of the gain if you file as single and up to $500,000 of the gain if you file as married filing jointly. You cannot take a loss on the sale of your personal residence.Please let me know if you require further information or clarification.Thank you and best regards,Barb
Expert:  Barbara replied 2 years ago.
I see you are now offline. If you have any other questions or concerns, please come back to me here at your convenience, and I will be happy to assist you. If not, please take a moment to rate my answer since that is the only way I receive credit for answering you and alerts Just Answer to compensate me.Best regards,Barb