Long-Term Capital Gains Deductions

[Tess Fike]

• My husband and I purchased a home that we used as our primary residence in June 2020 for $182,000
• We are now selling it for $295,000 in July 2021
• We currently fall into the LTCG category of 15%
• Our new home is being purchased for $425,000 (also primary residence)

I was wondering if someone could give me a list of deductions that will "decrease" our profit that will result in a decrease of our LTCG amount?

We're set to make $113k gross profit, but we've put about $20k into the house in repairs and upgrades. I also know you can deduct agent commission, closing costs etc... I suppose my question is, according to the IRS is the sale of property A (old) and a purchase of property B (new) seen as one large transaction where you pretty much can deduct as much as possible from the profits of the sale of the old property (i.e. deduct the closing costs of the new house?)

Hopefully this makes sense!

[Joe Splitrock]

@Tess Fike you really need to consult with a tax professional. I am all about DIY but in this case it is worth spending some money to ensure you are claiming everything correctly.