This is my first house. Years ago, I was told to save all receipts of repairs and renovations as these can get deducted from my taxes when I sell the house, or something like that. Someone else just told me it does me no good to save these receipts as this doesn't apply to first-time homeowners. Can someone enlighten me????? Signed: Ignorant in Iowa
it won't really do you any good to save your receipts for any kind of deduction at the end. The only reason you would ever need them is if you ran into a capital gains situation. if you have lived somewhere for under 2 years and have realized a significant profit, the government is going to want a cut (imagine that) but if you prove you have put alot of money they will cut you some slack. Saving receipts is always a good idea though just incase the person you are selling your house to would like to see them. Laws/guidelines vary state to state on these types of things, if you would like a realy absolute answer check with your local city hall/township office or a local realtor and see what they say. Good luck
Current Federal Income Tax codes allow a $250,000 tax free gain on your residence as long as you have lived in it at least 2 out of the last 5 years. That said, if you expect more gain than that, save all receipts. Otherwise, may not be of any use.