How Record Keeping Can Slash Your Tax Bill When You Sell Your Home

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Award-nominated authors release new workbook as a tool for homeowners

KISSIMMEE, Fla. - s4story -- Authors Thomas J. Williams, EA and Iris K. Palma, JD penned another book in the Deducting The Right Way collection. Deducting The Right Way: Homeowner's Journal is now available on Amazon worldwide. It focuses on helping taxpayers who own real property in their personal names (not part of a business).

The workbook guides the reader through a systematic process to track all their buying, improving, and selling expenses. Only specific costs can appear on the federal tax return, and the IRS makes you suspend them until you sell the home.

"Your primary residence is likely your most valuable asset. As a homeowner, you must learn to reduce your taxable gain, so you can pay the least amount of capital gains tax when you sell," said Williams. "Record keeping is your biggest ally because it protects your tax deductions. Our step-by-step workbook shows you how to minimize your income tax by creating a running total of your adjusted basis," added Palma.

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Although the IRS exclusion offers an automatic reduction for your primary home's gain, it's possible to surpass the threshold. "You may reside in a desirable neighborhood, or live in the house for decades and experience significant appreciation," said Williams. "The journal is also a great tool for estate planning. You can hand down a complete record of your home improvements. It's easier for your heirs to determine the most recent features to include in the seller's listing description when the house is for sale."

About Deducting The Right Way®: We are building a community of like-minded entrepreneurs who prefer the do-it-myself model but want professional guidance with their business finances. We offer practical information and resources for bookkeeping, accounting, and tax — from free tips and downloads to subscription services. Visit our website and check out our book Deducting The Right Way: Untangling Small Business Accounting & Taxes.

Source: Deducting The Right Way®
Filed Under: Books

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