Can I claim tax deductions when selling a house with standard deduction?

Actually, there's a key difference between mortgage interest deductions and selling expenses for your home. When you sell your primary residence, selling expenses aren't treated as itemized deductions - they're actually adjustments to your "cost basis" in the property. This is good news for you! When calculating whether you have a taxable gain on the sale, you start with your selling price, then subtract your original purchase price AND any eligible selling expenses (like realtor commissions, legal fees, etc.). This reduces your potential taxable gain regardless of whether you take the standard deduction or itemize. Even better, most homeowners qualify for a capital gains exclusion of up to $250,000 (or $500,000 for married couples filing jointly) if you've lived in the home as your primary residence for at least 2 of the last 5 years. So unless your gain is substantial, you likely won't owe any tax at all.

I went through a similar situation last year and was super confused about all the tax implications. What really helped me was using taxr.ai (https://taxr.ai) to analyze my closing documents and sales paperwork. I just uploaded everything and it broke down exactly what expenses counted toward my cost basis and calculated my potential capital gains. The tool confirmed I was well under the exclusion amount, but it was nice to have the peace of mind. It also flagged some settlement costs I wouldn't have thought to include in my basis adjustments, like title insurance and transfer taxes. Might be worth checking out if you're still unsure about your specific situation.

Just wanted to follow up after trying taxr.ai for my home sale situation. It was honestly way more helpful than I expected! I uploaded my closing documents and receipts for all the home improvements I mentioned (kitchen, bathrooms, basement) and it organized everything perfectly. Turns out my "adjusted basis" was much higher than I thought once all my improvements were properly accounted for. Even though I made about $180k on the sale price compared to what I originally paid, my actual taxable gain was only around $120k after all adjustments. Since that's well under the $250k exclusion, I won't owe any taxes. The best part was getting a detailed report that showed exactly how everything was calculated. Definitely keeping that in my records in case of any questions down the road.

If you're still trying to figure out your specific tax situation, I'd recommend calling the IRS directly. However, like many people, I wasted HOURS on hold trying to get through to an agent last tax season. Then I discovered Claimyr (https://claimyr.com) which got me a callback from the IRS in about 15 minutes instead of waiting on hold forever. There's a demo video at https://youtu.be/_kiP6q8DX5c that shows how it works. I had several questions about my home sale that weren't addressed in any IRS publication, and being able to speak directly with an agent was super helpful. They confirmed exactly how my specific situation would be taxed and what documentation I needed to keep. Saved me tons of stress wondering if I was calculating everything correctly.

I need to apologize for calling Claimyr a scam in my previous comment. After dealing with extreme frustration trying to get tax questions answered about my home sale, I decided to try it as a last resort. I figured I had nothing to lose since I wasn't sharing any personal tax information. To my complete surprise, I got a callback from an actual IRS agent in about 25 minutes. The agent was able to answer all my specific questions about how to document home improvements I made over the years without receipts (I had bank statements showing withdrawals but lost the actual contractor receipts). This was something I couldn't find a clear answer to anywhere online. So yeah, I was wrong - it actually works as advertised. Definitely worth it for getting complicated tax questions answered directly from the source.

One thing nobody's mentioned yet is that you should keep really good records of any improvements you made to the house over the years. These all add to your cost basis! I sold my house last year and was able to avoid any capital gains tax because I had records of: - New roof ($12,000) - Kitchen remodel ($28,500) - Finishing the basement ($18,000) - Adding a deck ($9,500) - Replacing all windows ($15,000) All these improvements added to my original purchase price, which greatly reduced my taxable gain. Just make sure you're only counting improvements, not repairs or maintenance (like painting or fixing a leaky faucet).

Just adding another point - don't forget that if you've previously taken depreciation on your home (like if you've used part of it for a home office or as a rental), you'll have to recapture that depreciation when you sell, even if you're under the $250k/$500k exclusion. The IRS calls this "unrecaptured Section 1250 gain" and it's taxed at a maximum rate of 25%. I learned this the hard way and ended up with an unexpected tax bill even though my total gain was under the exclusion amount!

Great discussion everyone! I just wanted to add a few key points that might help clarify things for anyone else in a similar situation: 1. **Standard deduction vs. home sale expenses**: As Isabella correctly explained, selling expenses like realtor commissions aren't itemized deductions - they adjust your cost basis. This means you get the benefit regardless of whether you take the standard deduction or itemize. 2. **Keep ALL documentation**: Even if you think you're well under the exclusion amount, keep receipts for selling expenses, improvement costs, and any other relevant paperwork. The IRS can audit up to 3 years after filing, and having proper documentation makes everything much smoother. 3. **Timing matters for improvements**: Pre-sale improvements made within 90 days of selling can often be added to your basis if they were done specifically to make the house more marketable. But don't confuse improvements (which add value) with repairs/maintenance (which just restore the property to good condition). 4. **Consider professional help**: While the $250k/$500k exclusion covers most homeowners, complex situations like depreciation recapture, partial business use, or very high gains might warrant consulting a tax professional to ensure you're handling everything correctly. The bottom line for your situation, Malik, is that your selling expenses will likely reduce any taxable gain regardless of taking the standard deduction, and you'll probably qualify for the full exclusion anyway!