One of the most important documents in a real estate transaction that you want to keep track of is the closing documents – HUD Statement and determining any tax considerations when Selling your Home.
From the HUD Statement from when you bought the home and the HUD Statement when you sold the home you can get a lot of the numbers that you need to calculate any “profit” from a sale.
1st calculation: What is the adjusted bases of the house you sold. Your adjusted basis is basically the original cost of the house plus the cost of capital improvements you’ve made. Examples are a new roof, a remodeled kitchen, a swimming pool, add a garage / pole barn, add a room, central air conditioning. So keep receipts of those expenses.
2nd calculation: Net…