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The Something Awful Forums > Discussion > Ask/Tell > Business, Finance, and Careers > BFC Newbies Thread: 33% of the interest paid is tax delectable
 
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Ungratek
Aug 2, 2005

TooMuchAbstraction posted:

I'm selling my house, which means a big wad of money coming in. Most of it is getting invested, but I'm guessing around $50-70k of it will need to go to taxes (yes, I know about the 250k deduction). What should I do with that money while waiting for tax day 2025? Just a savings account?

Make sure you are considering any capital improvements add to your basis, as does the amounts you pay for commissions. It’s not just the spread between purchase price and sale price that determines the gain.

Not saying you haven’t already done this call but just in case

* # ¿ Mar 26, 2024 22:18
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# ¿ May 9, 2024 22:14
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Ungratek
Aug 2, 2005

TooMuchAbstraction posted:

I knew about the improvements thing, and am planning to claim $40k for the workshop I added. What do you mean by commissions, the real estate agent fees?

Other improvements I did, off the top of my head:
- Hardwood floors throughout (which had to be replaced by carpet in two rooms, prior to sale)
- Three new cabinets in the kitchen
- EV charging plug
- Brick planters and concrete walkway in the back yard
- Under-cabinet lighting in the kitchen

I dunno that the hardwood floors can be claimed, insofar as they replaced some ratty old carpet. So that might fall under general maintenance? I guess I can come up with some numbers for the rest of them though.

Yes on the commissions. The real estate agents are paying income taxes on that, so you shouldn’t have to also.

I’d be comfortable claiming any of those as improvements for basis purposes on a clients returns except for maybe the EV plug since presumably you could take that with you, unless I misunderstand what you’re saying there.

* # ¿ Mar 26, 2024 22:34
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The Something Awful Forums > Discussion > Ask/Tell > Business, Finance, and Careers > BFC Newbies Thread: 33% of the interest paid is tax delectable