Spring is here and many homeowners favor this time of year to put their homes on the market. Most people get so excited about the entire sale process from start to finish, regardless of the challenges in between, and primarily focus on that one end point – selling their home. The spring and summer market are typically the best time of year to sell a home and rightfully so, since most potential buyers prefer to purchase in the warmer months as well. Though selling your home is truly an accomplishment, homeowners need be aware of the tax consequences that could exist when your home is finally sold. Most people tend to give primary focus to the profit or perhaps even the loss they may experience from the sale of their home and easily disregard, or are unaware of, the tax issues at hand.
With that said, there are significant gains or losses that come into play when selling your primary home. If you are selling a principal residence then there specific dollar amount exclusions that you can claim. The total amount of gain you can exclude will be dependent upon whether you are filing single or jointly. These gains that qualify for exclusion are also excluded from any net investment income tax as well. Having maintained accurate records throughout the ownership of your home, including the original purchase cost you paid and any home improvements you made along the way, minus any casualty losses you may have had, will certainly be a benefit to you when the time comes to file.
If you suffer a loss in the sale of your home, unfortunately this dollar amount is not allowed to be deducted. The only time you can take a loss as a deduction is when a portion of your principal home was used for a personal business. Other than this scenario, a loss on sale is not deductible.
There are abundant tax issues that you must consider and be aware of when the time comes to sell your home, which is why we recommend you contact the professionals here at Tax Alternatives for all your tax needs. Our highly skilled and trained tax specialists have all the knowledge, education, training and insight needed to assist you with your tax filing once your primary residence is sold.
Yes, it is a wonderful feeling when you are able to finally sell your house, but we don’t want you to be hit with unsuspecting tax surprises when all is said and done. If you are truly thinking about putting your home on the market, then be sure to contact our experts to learn about all the potential tax consequences of your home sale.
Here at Tax Alternatives we provide top of the line tax services for homeowners, individuals, and small businesses alike. We provide quality services to all our valued clients and have been recognized time and time again in the industry for our outstanding customer service and customer satisfaction rating. In addition to our superior tax services, we also provide insight and services needed to run your small business effectively and efficiently and all without high costs or complicated processes.
If you are looking for a professional team you can trust, then surely you have come to the right place. Give a shout out to our specialists whether you are looking to put your primary or second home on the market or are looking for the right team to help run your small business for profit. Contact us today. We look forward to serving you and to assisting you with all your business and tax related endeavors.