Most homeowners keep receipts in a drawer, an inbox and a phone camera roll — and find out at sale time that half of them are gone. A few minutes of record keeping now protects your warranties, answers buyer questions and can reduce the tax on your profit later.
What records to keep
Purchase documents
Closing statement, settlement costs, inspection report and disclosures. Your cost basis starts here.
Capital improvement receipts
Invoices, permits and contracts for work that adds value or extends the home's life — a new roof, remodel, added room, new HVAC, solar, fencing.
Before and after photos
Dated photos prove the work happened and show what changed.
Warranties and manuals
Roof, windows, appliances, water heater. Keep them with the receipt they belong to.
Maintenance log
Dates and vendors for HVAC service, gutter cleaning, pest control, septic pumping and similar upkeep.
Insurance and claims
Policy documents, claim records and any repairs paid by insurance.
Why improvement receipts matter: cost basis
When you sell, your taxable gain is roughly the sale price minus your cost basis. Your basis starts with what you paid for the home plus certain closing costs, and it goes up with every capital improvement you can document. Higher basis, smaller gain.
For a main home, the IRS lets most owners exclude up to $250,000 of gain ($500,000 for married couples filing jointly). In high-value markets like much of California, long-time owners can pass those limits — and that's when documented improvements make a real difference. Ordinary repairs and upkeep generally don't count toward basis.
Improvement or repair?
Usually an improvement
- New roof
- Kitchen or bath remodel
- Room addition or deck
- New HVAC, water heater or electrical panel
- Solar panels
- Landscaping, fencing, driveway
Usually a repair
- Fixing a leak
- Patching drywall
- Repainting a room
- Replacing a broken window pane
- Servicing the furnace
- Unclogging a drain
How long to keep them
Keep purchase and improvement records for as long as you own the home, plus at least three years after you file the tax return for the year you sell. Maintenance records are worth keeping for the life of the systems they cover — and they're useful to hand to the next owner.
Start your home file
Stop keeping receipts in a drawer.
Email or snap a receipt and WiseRaven reads it, files it under your home, flags improvements and keeps photos, warranties and maintenance reminders together. When you sell, export a Home History report and a line-item spreadsheet for your tax professional. Plans start at $25 a year.
Just moved in? Read the New Homeowner Checklist — California Edition.
This guide is general information, not tax or legal advice. See IRS Publication 523 and talk with a tax professional about your situation.