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Nine Tax Tips For Selling Your Home
Here are some things you’ll want to know when selling your house.....
1) If you sell a home at a profit, you might be eligible to exclude all or part of the gain from your income. This “Capital Gains Exclusion” rule generally applies if you’ve owned and lived in the home as your primary residence for at least two out of the past five years (based on sale date).
2) You can usually exclude up to $250,000 in gains from income ($500,000 if filing joint return).
3) You may not need to report the sale of your home on your tax return if you can exclude all of the gain per above.
4) If you can’t exclude all of the gain, you’ll need to report the sale on your tax return. Also, if you receive a Form 1099-S for the sale, you’ll have to report the transaction on your tax return.
5) You can usually only exclude gains from the sale of one primary home every two years.
6) If you have more than one house, you can exclude gains only from the sale of your primary home. Taxes are due on gains from the sale of any other home. Your primary home is generally the one you live in most of the time.
7) If you received a first-time homebuyer credit on a home in which you sell, special rules may apply.
8) Losses on the sale of your main home are not deductible, as personal property losses do not receive tax deductions.
9) Upon selling and moving, be sure to update your address. To update with the IRS, either file Form 8822 or simply update with the filing of your normal Tax Return. Also, if your move is greater than 50 miles and for the purpose of work, consider deducting moving expenses on your tax return.
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