Re: House Improvements/Basis/Tax

[EMAIL PROTECTED] (Niel) wrote in message news:<[EMAIL PROTECTED]>...
> Since I bought my house 12 years ago, I have added about $20,000 in
> permanent improvements which count toward the cost basis.  I am about
> to sell it for a $60,000 profit.  Also since 12 years ago, the tax
> exemption on capital gains on a house sale has risen to $500,000 for
> married couples.
> Do I have any reason to continue to track my house basis?
> Will any of it come up for any reason anymore?
> Can I just throw all my receipts and records of the improvments away?

Neil,

Personally I wouldnt bother keeping track of your costs
any more. It doesnt make sense with how the new tax is laid out. 
Essentially if your are going to make less the 500k on the new house 
(married) and you are in it for more then 2 years, any profit
is totally exempt now. Would I throw all those receipts and records away? 
Probably not. Toss them in a box and stack it in the back of the basement. 
You never know when you are going to need to figure out who you bought 
that odd but nice faucet from, etc... Once you sell the house, leave the 
box behind for the new owner.

Mike