IRS Section 121 & Publication 523
Home Renovation & Capital Gains Tax Calculator
Faded thermal paper receipts in a shoe box could cost you $10,000 to $40,000+ in lost tax exemptions when you sell your house. See your exact savings below.
Your Property Parameters
$
$
$85,000
Includes kitchen remodels, bathroom gut, roof, HVAC heat pump, electrical panels, framing, and permanent additions.
Tax Savings Analysis
Direct Cash Saved At Closing:
$11,900
By maintaining structured receipt records in Supervision, this amount stays in your pocket rather than going to the IRS.
Gross Home Appreciation:$550,000
Section 121 Exemption:-$500,000
Taxable Gain (Lost Receipts):$50,000
Taxable Gain (With Supervision):$0
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IRS Publication 523 Guide: What Qualifies as a Capital Improvement?
✓ Increases Your Tax Basis (Capital Improvement)
- Complete kitchen gut & new custom cabinetry
- Bathroom remodeling (tile, vanity, fixtures)
- New roof, architectural shingles, or siding
- HVAC system, heat pump, or tankless water heater
- Upgraded 200A electrical panel or whole-home rewire
- New driveway, deck, perimeter fence, or patio
✕ Does NOT Increase Basis (Routine Repair)
- Interior touch-up painting or drywall patch
- Repairing a leaky faucet cartridge or running toilet
- Replacing a broken window pane or door latch
- Gutter cleaning or annual furnace servicing
- Tools bought for the project (drills, ladders)