A capital improvement is something that adds value to the home or extends its useful life. Examples include adding square footage, finishing a basement, replacing all the windows, installing a new roof or upgrading to a new furnace. The 1997 Taxpayer Relief Act introduced a capital gains exclusion of $250,000 for single homeowners and $500,000 […]
Increasing the velocity of real estate wealth by limiting capital gains taxes
If you own your personal residence in Colorado, you have probably noticed that your recent tax assessment increased by a large percentage. If you are planning to sell your home in the near future, the increased appreciation will result in the likelihood that you have a large capital gain tax bill to pay. The Taxpayer […]
Home appreciation outpacing capital gains exclusion
It is very tough to “outsave” an appreciating real estate market. The 1997 Taxpay Relief Act allowed for a $250,000 capital gains exclusion for a single person and $500,000 for a married couple when a personal residence was sold. The caveat was that the homeowner needed to live in the home for the last two […]