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A happy couple holding keys in front of their new home on a sunny day.

Why Homeowners Need to Track Improvements Before a Sale or Inheritance

As home values rise, the federal home sale exclusion may no longer be enough to eliminate capital gains tax when a property is sold or inherited. The difference between a large tax bill and a smaller one can come down to how well a homeowner documented capital improvements over the years. Keeping a permanent record of qualifying expenses is one of the simplest steps homeowners can take to protect themselves.

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