One Easy Thing to Do After You Buy a Home

After you close on your home and get the keys, there is one simple thing I think every homeowner should do:

Create a Gmail account just for your house.

Use the property address in the email name if you can, and start sending anything related to the home to that account.

Things to save there:

• Inspection reports
• Contractor invoices
• Receipts for upgrades and improvements
• Permits
• Appliance receipts and warranties
• Roof, HVAC, plumbing, and electrical records
• Landscaping or pool work
• Before-and-after photos of major projects
• Names and contact information for vendors you liked

It may not seem important when you first move in, but a few years from now, you will be very happy everything is in one place.

It can also help when it is time to sell.

Some improvements you make to your home may be considered capital improvements, which can increase your cost basis in the property. A higher cost basis can potentially reduce the amount of taxable gain when you sell.

For example, if you bought your home for $800,000 and over the years made $100,000 in qualifying improvements, your adjusted cost basis could potentially increase to $900,000. If you later sold the home for $1,200,000, your gain would generally be calculated using that adjusted basis, subject to other costs, exclusions, and tax rules.

Things like a new roof, major kitchen remodel, new HVAC system, or an addition may qualify, while normal repairs and maintenance generally do not.

Your CPA can tell you exactly what applies to your situation, but keeping the receipts is the important first step.

I also love this idea because when you eventually sell, you have a history of the home ready to go. You can easily find who installed the air conditioner, when the roof was replaced, what appliances were purchased, and what improvements you made over the years.

Buying a home comes with a lot of paperwork. Creating one email account for the house is such an easy way to stay organized from the day you move in until the day you sell.