Owning a home means having a place that’s safe and secure to come back to after a long day at work, every day, forever, until you decide it’s time to buy a different home. In exchange for all this homeiness, all you have to do is keep all the broken bits together, maintain the grass and track home-related expenses.
Oh yes. If you don’t do a little bookkeeping, the tax man gets his and more. Might as well keep that cash as not, right?
Why You Should Track Home-Related Expenses
Your primary residence isn’t an investment, this has been said time and again (especially since the market crashed entirely), but that doesn’t mean that when you go to sell you have to take a loss. Far from it.
In fact, as of the writing of this article, you’ll likely qualify for a tax exclusion (meaning you won’t pay taxes on this amount of profit from your home sale) of $250,000 if you file on your own or $500,000 if you and your spouse file your taxes together. But, if you...