One of the most misunderstood topic is the Capital Gains tax and how it might apply to you when you sell your home. It is really very simple.
If you have lived in your primary home for at least 2 years, you are exempt from any Capital Gains tax under these two circumstances:
1)If the total gain on your property less improvements is under $250,000 for a single person
2)If the total gain on your property less improvements is under $500,000 for a married couple.
|Purchase of Home Improvements over 2 years Total Investment Sale of Home in 3rd year Net Gain||$100,000 $ 10,000 $110,000 $125,000 $ 15,000|
The net gain of $15,000 falls well short of the allowance of exemption of tax for either $250,000 for single person or $500,000 for married.
Therefore, no capital gains would apply.
Capital gains may apply if your property is sold in less than two years, and/or if you are an investor in properties as a business.
Make sure interior & exterior painting is in “new condition”.
Screens should not have holes, and windows should work well.
If necessary, power wash exterior of home, especially the front of the home.
Extra cleaning may be necessary for dust collecting places.
Carpets should all be professionally cleaned & spot free, replace if necessary with remnant.
House pets should be kept under control at all times. Eliminate pet “odors”.
All appliances should be in good working order.
Buyer’s first impression on the exterior of the house is important. Do any necessary repairs to improve the home.
Buyer’s first impression on the interior of the house is important too. Complete all repairs to improve interior.
Buyers will often look in closets. Remove unnecessary clutter to make closets appear roomier.
Take items from kitchen cabinets to make them look more spacious.
Rearrange or remove furniture to make rooms appear larger.
Be sure any cabinets are touched up or refinished, Old English can do wonders.
Replace old doormats with any family name on them.
Garage and any storage areas should be neat and clean.
See that all landscaping is in good order, trimmed or pruned, add new wood chips if necessary. Add flowers to enhance curb appeal.
Keep lawns mowed in spring & summer.