Ultimate Tax Prep Checklist for Home Sellers Capital Gains Tax Exclusion – Have you lived in your home for at least 2 out of the last 5 years? You may qualify for up to $250K (single) or $500K (married) tax-free! Gather Home Improvement Receipts – Keep records of major upgrades (roof, kitchen, HVAC, etc.) since they increase your cost basis and lower taxable gains. Calculate Your Cost Basis – Add up your purchase price + improvements + closing costs to determine the real taxable profit. Check for Moving Expense Deductions – If you moved for work or military service, you may qualify for tax deductions! Understand New York Tax Laws – Selling in NYC? There are state and local taxes like the NYC Transfer Tax and the Mansion Tax (for homes over $1M). Estimate Your Capital Gains Tax Liability – If you exceed the tax-free threshold, plan for federal and state capital gains taxes. Consider a 1031 Exchange – If you’re reinvesting in another property, a 1031 exchange can help defer capital gains taxes. Review Mortgage Interest & Property Tax Deductions – See if you’re eligible to claim deductions for the time you owned the home. Consult a Real Estate Tax Professional – A tax expert can help ensure you maximize your savings and minimize your tax bill. Need guidance on selling your home? Contact me, Peter Mancini of Pen Realty, a member of REBNY & BNYMLS, to ensure you get the most out of your sale!