There are 5 major tax deductionsyou can write off with IRS when you sell you home. The amount could add up to substantial savings, so it is worth knowing your options.
1. Selling cost. That's right, you can deduct selling costs like marketing, agent's commission, staging cost, escrow fees, and legal fees.
2. Home repairs and improvements. If you renovated, painted or upgraded your home before selling, you can deduct the cost of it. Make sure though that it was done within 90 days of the closing.
3. Property taxes. You can deduct the property taxes for the time you owned the property. With the new 2018 law the deduction amount is capped at $10,000.
4. Mortgage interest. You can write off the interest on your mortgage for the time you owned the property. As before the cap for the mortgage interest was on the debt of 1 million dollars, then the new 2018 tax law caps it at the debt owed of $750,000.
5. Moving expenses. If you sold your home in 2017 because of job related move, you can write off the expenses of that move. New 2018 tax law eliminates that deduction for all other than active members of armed forces.
6. Lastly, although its not a deduction but rather exclusion. Capital gains, which is any profit made after you sold your home and paid all the expense including the debt of the mortgage, is considered as income and therefore taxed. Filing single, you can exclude up to $250,000 of capital gains and up to $500,000 if filing as married. You must have lived at the house 2 out of the 5 years for that exclusion to apply.
To see what your home would sell for text Evelin to 85377 or call Evelin Kahre 720-297-0823
Author:Evelin Kahre Phone: 720-297-0823 Dated: March 13th 2018 Views: 86 About Evelin: Evelin Kahre moved to Denver, Colorado from the small country of Estonia in 1998. She has lived in D...
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