Selling a home requires quite a bit of legwork. Your Realtor® will do quite a bit of it, but if you’re like most people, you’re probably reeling from everything that’s going on. From closing costs to taxes, there’s a lot to consider.
Let’s talk about those taxes.
The Tax Implications of Selling a Home
If your home was your primary residence for at least two out of the last five years, you may be excluded from having to pay taxes on the capital gains from the sale.
In some cases, you can take the exclusion on your profit even if you don’t meet their two-year requirement. For example, if you couldn’t live there because you were deployed by the military or another government organization, or if you’ve gotten divorced, you could be eligible.
Some people are eligible for partial exclusions, but those vary based on circumstance.
If you are required to pay taxes, the amount will be based on the sales price, your closing costs and your basis. Some things are deductible, such as the broker’s commission, your title insurance, and legal fees. However, there’s no one-size fits all solution for taxes, and this certainly isn’t mean to constitute tax advice. You’ll need to consult with a tax professional who can give you case-specific advice.
Let’s Talk about Putting Your Home on the Market
Call me at 708.218.8102 or contact us online. I have qualified buyers looking for homes all over the Patti Wagner area, and i’ll use our extensive experience to get your house in front of the right people.