Property-sale tax organizer

Gather the records that can change the answer.

Use this before closing—or before asking someone to calculate the tax. Print it, mark what you have, and distinguish documented figures from assumptions.

Check basis readiness

1. Identify the property and timeline

Expected or actual closing date
Principal residence, second home, rental, business property or mixed use
Dates acquired, occupied, moved out, converted to rental and sold
Ownership changes, inheritance, gift, divorce or trust history
Prior home-sale exclusion used within two years

2. Establish starting basis

Original settlement statement or closing disclosure
Purchase contract and purchase price
Certain acquisition and title costs
Records for property received by gift or inheritance
Earlier deferred gain or exchange records, if applicable

3. Document improvements

Invoices, contracts, permits and proof of payment
Additions, major systems, remodeling and structural work
Dates placed in service
Insurance reimbursements, credits or subsidies
Separate repairs and maintenance from capital improvements

4. Reconcile rental or business use

Depreciation schedules from every affected return
Depreciation allowed or allowable, not only what was claimed
Home-office location and years used
Periods rented or held for investment
Passive-loss and suspended-loss records

5. Document the transaction

Expected sale price
Broker commissions
Escrow, title and qualifying selling costs
Seller concessions and property-related adjustments
Mortgage payoff listed separately as a cash item—not a basis item

6. Frame the tax questions

Does the sale qualify for a full or partial residence exclusion?
What gain is not excludable because of depreciation or use history?
Which federal capital-gain rate and NIIT assumptions apply?
What California rate and residency treatment apply?
Would timing, an installment sale or another structure require separate analysis?

Keep sensitive records out of the public form.

For a first inquiry, provide only the property type, expected closing date and a general description of the ownership and use history. Secure-document instructions follow if the work proceeds.

Request a basis review Return to the organizer

Keep the distinction clear

Cash after closing is not the same as taxable gain.

Cash question: sale price less selling costs, mortgage payoff and other closing adjustments. Tax question: amount realized less adjusted tax basis, followed by exclusion, character, rate and other tax rules. A useful plan answers both.