How do you track the cost basis for your house to know if you owe capital gains tax at time of sale? I paid $150,000 for my house in 2014 and have spent at least $150,000 on improvements since I bought it. The house is now worth around $400,000. I could see easily exceeding my $250,000 allowance at sale time years or decades down the road.
A lot was DIY so I have stacks and stacks of receipts. I spent at least $110,000 before I even moved in on a complete interior and exterior overhaul because the previous owners never fixed anything and destroyed the house.