“Success is not the key to happiness. Happiness is the key to success. If you love what you are doing, you’ll be a success.”
— Albert Schweitzer, humanitarian
Tax Tips When Selling Your Home – Review these important tips below from the IRS to find out ways to minimize or avoid paying taxes on the profit from the sale of your home:
- If you sell your home at a gain, you may be able to exclude part or all of the profit from your income. This rule generally applies if you’ve owned and used the property as your main home for at least two out of the five years before the date of sale
- You normally can exclude up to $250,000 of the gain from your income ($500,000 on a joint return). This excluded gain is also not subject to the new Net Investment Income Tax, which is effective in 2013
- If you can exclude all of the gain, you probably don’t need to report the sale of your home on your tax return
- If you can’t exclude all of the gain, or you choose not to exclude it, you’ll need to report the sale of your home on your tax return. You’ll also have to report the sale if you received a Form 1099-S, Proceeds From Real Estate Transactions
- Generally, you can exclude a gain from the sale of only one main home per two-year period
- If you have more than one home, you can exclude a gain only from the sale of your main home. You must pay tax on the gain from selling any other home. If you have two homes and live in both of them, your main home is usually the one you live in most of the time
- Special rules may apply when you sell a home for which you received the first-time homebuyer credit
- You cannot deduct a loss from the sale of your main home
When you sell your home and move, be sure to update your address with the IRS and the U.S. Postal Service. File Form 8822, Change of Address, to notify the IRS.
Please pass my name on to anyone you know looking to buy or refinance a 1 to 4 family primary residence, second home or investment property in NY, NJ, CT, PA and FL. They will thank you for referring me!! Additionally, I provide reverse mortgages as well.
Have a great day!
NLMS#111118 | Company NLMS #34973
NJ- Licensed by the NJ Department of Banking and Insurance – License # 9964632
NY- Licensed Mortgage Banker – NYS Banking Department – License # B500689
CT- Licensed Mortgage Banker – CT Department of Banking – License # 13236
FL- Licensed by the Florida Office of Financial Regulation – License #MLD388
PA-Licensed by the Pennsylvania Department of Banking – License #20875Marc