Taxpayer Avoided 15 Hours of Paperwork; Lost $35,000 to the IRS

Most taxpayers find that keeping accurate records is a pain in the neck.

But failing to keep these records can cost you a tremendous amount of money. That could be true even when it comes to tracking what you’ve spent over the years on home improvements.

We’ve run the numbers on the Pendergrafts and discovered that they avoided just fifteen hours of paperwork that cost them $35,000 on their tax bill … and perhaps a lot more!

The bottom line? If you want to stay on Uncle Sam’s good side and get every home improvement tax break you’re entitled to, take a minute and read my new article titled Tax Tips: Taxpayer Saved 15 Hours of Paperwork, Lost $35,000 to the IRS.

Three ways our fact-filled article can help you:

1. We’ll explain why keeping a record of all home improvements is so important. The general principle is simple: home improvements add to your basis and reduce taxable capital gains. When your friendly IRS agent comes calling, you can’t get by “guesstimating” how much you spent on those storm windows you installed when you moved in thirty years ago. Or the cost of insulating the attic a decade ago. You need a complete paper trail to prove your claims, as you’ll learn when you read the full article.
2. We’ll tell you about the huge mistake Riley and Joyce Pendergraft made. The Pendergrafts made some major improvements to their home. They installed a lovely swimming pool and added a second story to the structure. But when they sold their home, they couldn’t provide the IRS with the necessary paperwork. The result? The court nailed them for taxes on $101,907 in taxable capital gains when they actually should have paid $0. You’ll get the whole story when you read the full article.
3. We’ll show you how to get back the money you spent on improvements. Here’s what you have to do: keep a record of all your home improvement expenditures in a permanent file. You never know when you’ll need to prove what you spent on your home improvements. After all, tax laws change, benefits come and go, and home prices escalate. Which means you have to be prepared with receipts and invoices for the improvements you’ve made, plus cancelled checks that prove you’ve paid the bills for the work. You’ll get full details when you read the full article.