The last thing you want to think about when you've finally finished buying a home is doing more paperwork! However, it's much easier to find these important numbers when you're in the thick of the home buying process than it is to dredge them up five or twenty-five years later when you are getting ready to sell.

So, do yourself a favor and create a folder or document or spreadsheet or rock opera (whatever you prefer) that lays out each of these numbers because they're all gonna matter when you sell your house, and one of them will matter even sooner if you have a home office or rent out part of your home:

  • Land Cost - this is something that's usually laid out in your tax assessment or appraisal (i.e. how much the land is worth versus the structure on the land)
    • The purchase price of a home will generally include the value of the land included in the property. Surprisingly, this is sometimes also true for folks who own apartments, co-ops, or condos (though it can be a little harder to find the info).

  • Purchase Expenses

    • Inspections

    • Estimates paid

    • Abstract fees

    • Charges for installing utility services

    • Legal fees

    • Realtor fees

    • Recording fees

    • Surveys

    • Transfer taxes

    • Title insurance

    • Any amounts the seller owes that you agree to pay (back taxes or interest, recording or mortgage fees, charges for improvements or repairs, and sales commissions)

For purchase expenses in particular, all of that gets added up and factored in when we figure out how much profit you make on a home sale. So get it down now and you can forget about it until you need it later.

Got questions about your unique situation and taxes? No problem. Reach out to info@brasstaxes.com and we can set up a consultation.