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.

Laugh at the most relatable tax misunderstandings – then learn the real rules on service animals, business travel, multi-state filing, and how the IRS actually detects discrepancies.