Tax Tips for Home Sellers

Thinking of selling your home? Here are some essential tips to keep in mind before, during and after tax time:

Capital Gains Exclusion: If you've owned and lived in your home for at least two out of the last five years, you may qualify for a capital gains exclusion of up to $250,000 for single filers or $500,000 for married couples filing jointly.

Keep Records: Maintain thorough records of home improvements, repairs, and other expenses related to the sale of your home. These documents can help you accurately calculate your capital gains and potential deductions.

Home Office Deduction: If you use a portion of your home exclusively for business purposes, you may be eligible to deduct related expenses such as utilities, insurance, and maintenance.

Consult a Tax Professional: Tax laws and regulations can be complex, especially when it comes to real estate transactions. Consider consulting with a qualified tax professional to ensure you're maximizing your deductions and complying with all requirements.

Closing Costs: Certain closing costs, such as title insurance, legal fees, and real estate commissions, may be deductible. Be sure to keep track of these expenses for potential tax benefits.

Remember, proper tax planning can help minimize your tax liability and maximize your financial return when selling your home. Consult with an expert real estate agent and tax advisor for personalized guidance tailored to your situation.