Buying or selling a house could benefit you when tax time rolls around. While there’s no guarantee that it will (you’ll need to talk to a tax professional to be sure), tax exclusions and rebates are always worth looking into.
Home Sellers and Taxes
If you’re selling your home, it is best to work with a tax expert. He or she will know the ins and outs of current Internal Revenue Service regulations, tax codes and everything else that applies to your sale.
In many cases, federal tax laws allow you a tax exclusion on the capital gains from your home sale. You have to meet very specific criteria (such as having lived in the home as your primary residence for two out of the past five years).
Single taxpayers can exclude profits up to $250,000 and married payers who file jointly can exclude profits up to $500,000, but again, you have to meet the right criteria. Your tax professional will be able to explaining whether you qualify.
Homebuyers and Taxes
Buyers have tax incentives, too. Federal law allows you to deduct the interest you pay on your mortgage. You may also be able to deduct the points you paid to get a lower interest rate in the year that you paid them.
There’s No Substitute for a Tax Professional
Whether you use a small accounting firm or you have your taxes done at a big chain, the year you buy or sell a home is not h year to attempt doing them yourself. You could miss important deductions (or worse, miss the fact that you owe the IRS money) or shortchange yourself in other ways.
It’s always a good idea to work with a tax professional who knows the federal and local tax laws. Think of it as protecting yourself.
Thinking about Selling Your Main Line Home?
Call us at (610) 608-3119 or fill out our online contact form. We work with highly qualified buyers in the Main Line area who may be looking for a home like yours. Our aggressive marketing techniques are second-to-none, and our clients report an extremely high satisfaction rate with our services. We’ll be happy to put our experience and knowledge of the Main Line area to work for you.