09 Feb Make a record of the cost basis of your residential house
If you own a home, do you keep tab of your cost basis? Under the Internal Revenue Code, your cost basis is your original cost to purchase plus any allowable improvement that you did on the house. If you did some major renovation this year, keep the receipt and log them in in a journal so you will have a record and proof of your adjusted cost basis if you sell the house. Oftentimes, these major repairs are forgotten and never claimed to reduce the capital gains from sale of the property.