When it comes to selling a home, you’ll want to make as much profit as you can. It’s crucial that you understand what tax deductions you can take because there are a lot of expenses that can lower your profits, and you’ll want to recoup them wherever you can. With that in mind, the following are some tax deductions that may be available when selling a home:
- Home improvement/repairs costs: If you spent money on home renovations to make your home more appealing, then you can write those costs off. An example would be painting the house or fixing an appliance before listing your property.
- Moving expenses: If you’re an active military member, then you can write off your moving expenses as well. This can include the cost of hiring a professional moving service or the cost of moving long-distance (such as travel costs).
- Property taxes: Don’t forget you can write off your property taxes up to $10,000 for the last year before selling your house.
- Selling costs: Certain expenses involved in the home selling process can be deducted:
- Advertising costs
- Escrow fees
- Home staging expenses
- Legal fees
- Real estate agent fees
- …and more. However, this only applies to the sale of your primary home and not investment properties.
These are a few things you may be able to deduct from your taxes when you sell your home. Keep in mind that if you’re selling a home that you lived in for 2 out of the last five years, you likely qualify for the capital gains exclusion as well, which means you can save a significant amount on capital gains taxes.
For more home selling tips, contact us at Randy Lindsay today.