Top 10 Ways to Reduce Capital Gains Tax

2. Keep Records of Home Renovations

When preparing to claim after selling your house, you are allowed to add certain costs to the base cost of the house, such as agent fees, commissions paid, and transfer costs. You are also allowed to claim the cost of any improvements made to your primary residence, such as a boundary wall, an extension, or a swimming pool. By increasing the base cost of the house in this way, you are reducing the profit, hence a lower capital gain. It is vitally important that you keep supporting documents for all the expenses so your claims can be substantiated.

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