No problem Cindy.....first off I ain't that bright so let's clear that up right away.    
Part of buying a house is entering into a contract; when I entered into my contract I found a house that had potential (a fixer upper) with the implicit understanding that if I put my acquired skills (I learned on my own) and put thousands and thousands that are not evident on the purchase price into the home (say $75k) than I would have an avenue to get ahead so to speak and create something I like.   

What you are saying is that is all irrelevant you should have either bought a nicer house, or not fixed that house up, because we want to tax any improvements you make and any appreciation the house has acquired. 

Now since we have established it is a contract, should I have had any legal warning to know that in 5 years the government would come along and say hey we are going to start taxing your appreciation as well?   If I had known that I would not have entered into said contract.