You need to keep copies of all paper work for tax time; you'll need documentation for the expenses and proceeds of the sale. And even after you file the necessary forms with your tax return, you'll want to hold onto this paperwork in case you're ever audited.

Keep proof of improvements and prior purchases
It is a good rule of thumb to keep all receipts for the tax purposes. There is a tax law that allows you to add the cost of improvements to your home's cost basis during your years of ownership -- a potentially nice tax break, if you have a sizable capital gain.

The problem is, in order to take advantage of this tax break; you need to save receipts for every dollar you spend on home improvements. And, for as long as you're a homeowner and continue to defer paying tax on your profits, you have to hang onto these receipts. Keeping documentation for tax purposes is to anticipate the unexpected; think of it as insurance. Someday, you may sell your house and owe tax on your profits.

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Make sure to clean, remove all trash and vacate the day prior to settlement. Make sure all appliances should be in good working order in time for final walk-through inspection. Remember to contact all credit cards, investment accounts and utilities, you don't want to rack up late payment fees, interest charges, and damage to your credit report. Also remember to notify friend and family of your new address and phone numbers. Do not forget to obtain children's transcripts of school records. Secure medical, dental and optometry records for your family.

Don't delay informing all parties you know of your change of address! Visit or call your local post office and request a Mover's Guide, which includes a permanent Change of Address Order Card (or, on the Internet, go to the MoversNet site at http://www.usps.gov/moversnet). The Postal Service recommends that you complete and mail your Change of Address Order Card or Internet form 30 days before you move.

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