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 […]
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 […]