Real Estate

When selling your primary residence, make sure to get the big capital gains exemption on the sale ($250K for single people, $500K for married couples), particularly if you make a good profit compared to your cost basis. This exemption is applicable to those of us who have lived in their home for at least 2 of the prior 5 years. Also, don’t forget to track the major costs you have incurred to improve your home, as they increase your cost basis and decrease your gains from a tax perspective.