Six Tax Facts Every Home Seller Should Know!
Taxes can be confusing. Everyone wants to make sure they do them right, and get the most money back possible. Here are some tax tips and tricks that can help recent or upcoming home sellers make the most of their return!
1. If you've owned and lived in for two of the five years prior to selling it, you can generally exclude up to $250,000 of the gain from your income. This means $500,000 on a joint return, in most cases.
2. You are not eligible for this exclusion if you sold another principal residence in the last two years and excluded the allowable gain from your income.
3. If you can exclude ALL of the gain from the sale of your primary residence, you don't need to report the sale on your tax return.
4. If you have gain on your principal residence that exceeds the allowable deduction, it is taxable.
5. You can't deduct a loss from the sale of your primary residence.
6. Special rules may apply when you sell a home for which you've received the first-time home buyer credit. (See IRS publication 523, "Selling Your Home," for details.)
Questions? Give us a call and we will be happy to assist with what we can. We also have trusted and preferred tax professionals we can put you in contact with to best answer your questions. Don't hesitate to reach out.
- VAN DER LANDE & ASSOCIATES