Cost Basis of a House - Selling

It's the $300k you paid for it.

So, your gain is $300k (600k-300k), although you can deduct any improvements you put into the house that were not normal wear and tear type stuff. You can also deduct any real estate commissions and fees.

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It's the $300k you paid for it.

So, your gain is $300k (600k-300k), although you can deduct any improvements you put into the house that were not normal wear and tear type stuff. You can also deduct any real estate commissions and fees.

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I appreciate the clarification especially on the home improvements and fees.

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Plus being a primary residence, you should not have a capital gains(profit) obligation.

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Yes, it's been my primary for the last 4 years. Hopefully with the remodeling improvements that MMauler advised, my cost basis will be $350k plus so if I sell for $600k, I might be able to avoid CG tax.

Random question from a non-douche.

Sold a house in TX in Aug 2020 which at the time I claimed as primary to use the $500k capital gain exclusion.

Since then, sold a house in UT in Feb 2022 (less than 2 years since TX sale so can’t use primary home sale exemption again which sucks).

Possible to re-file 2020 taxes and pay the capital gain on the TX house sale such that I can then apply the primary home capital gain exclusion when filing 2022 taxes?

Given the requirement of 2 years of occupancy over the previous 5 years, I could have legitimately claimed on both. But, curious whether permissible to reclassify. Would save $70k in taxes if doable.

Thx in advance.

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Why did you sell UT house? If you have certain reasons, you can claim a partial exclusion based on number of months you lived there / 24 months. Was there a period of time where you owned both TX and UT houses? Was the UT house a rental or second home or ?

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Thx man.

Lived in TX house since 2007. Bought UT house in 2017 as second home.

During the 5 years spanning 2017-2022, I spent 60% of the time in TX and 40% of the time in UT so as not to be a UT resident for state tax purposes.

That said, the 40% of the time over 5 years equates to 2 years which I thought would allow me to classify UT sale as primary home as well.

But, as mentioned, I already claimed TX sale in Aug 2020 as primary.

That’s basis for question of can I refile 2020.

Gain on TX in 2020 was $150k so couldn’t use entire $500k exclusion. Gain on UT in 2022 is $1.8MM so would love to offset some of that with $500k deduction (or at least $350k which I was unable to use in 2020).

Thx again for any help.

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you absolutely need to find a CPA to work with

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Just use I AM BATMAN. You might go to jail for 5-7 yrs taking his advise, but hey, at least he has a nice nerdy handle name on this here Tigerdroppings. I kid I kid, his name sucks.