Question About Recent Home Sale
I recently sold my home. The profit before deductions is $325,000. After the $250,000 exclusion, I am left with $75,000. Deductible closing costs are about $40,000, leaving $35,000. My question is about capital improvement deductions. We did a major renovation of an older home; the total cost was approx. $350,000, of which close to $200,000 were deductible improvements. Obviously this more than covers the 35K, but what about the remaining $165,000? Do I get any tax benefit, or is there any way to deduct the remaining amount?