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Thunderbeast

(3,715 posts)

9. No...

Reply to WhiteTara (Reply #8)

Fri Oct 3, 2025, 05:32 PM

Friday

Capital gains is reduced by the improvements.

Bought house: 100,000
Sold house. 750,000
Gross gain. 650,000
Capital Improvements: 100,000
Gain. 550,000
Exclusion (Married) 500,000
Taxable Gain. 50,000

Tax @ 15% 7,500

Remember, Your Medicare Part A deduction from your Social Security benefit check(s) will be adjusted based on your Adjusted Gross Income (AGI) which will include the $50,000. That additional premium will be used for the year following the sale.