Ask Terry Questions Age 77, first time home owners-tax documents needed

Age 77, first time home owners-tax documents needed

By Terry Savage on March 12, 2023 | Housing / Real Estate

My husband and I purchased our first home, age 77, it’s tax time very soon, what paperwork do we need for taxes, receipts for items we’ve purchased for home, rug cleaning, epoxy garage floor,
lawnmower and or smaller items, we do have Master Settlement Statement from relator. We watch you every week of Channel 9 and trust your input. Thank you for any assistance.

Terry Says

OK, congratulations on being a homeowner. You will spend a lot of money that you don’t get to deduct! That includes all the stuff you buy for your home, and rug cleaning.
But you should keep track of “home improvements” — stuff that is permanent, like the epoxy garage floor (how does it look??) because when you eventually sell the home, those expenditures will be added to your “cost basis.” At that point, if your gains are over $500,000 on a joint return you would owe taxes. And you’d want to reduce that tax by any “improvements” you made in your home.

So keep your original purchase papers, and all those expenditures that are permanent, in a safe place.

You do get to deduct property taxes (state and local) up to $10,000 every year on your tax return. And you can deduct your mortgage interest (on the first $750,000 of your mortgage).
Plus home ownership gives you the good feeling that your home is (likely) going up in value over the years to come.



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