Buying a Home

If you bought a home in 2007, you've undoubtedly been busy with a glut of activities including shopping for a house and a mortgage, negotiating the purchase price, moving, and setting up your household in a new location.

You can add to this list of duties one fairly simple, but important task: collecting and retaining the records that show the basis of your home. The next few sections will explain the ins and outs of keeping this important information.

• reasons for tracking your basis
• computing your initial basis
• adjustments to your home's basis