Common Misunderstandings About Tax Benefits Of Selling Your Home

The phrase “it’s a seller’s market” in real estate means that if you are looking to sell your home, you should expect plenty of buyers looking for homes and could reasonably expect top dollar for the home. It also means that your home should sell quickly. That can be good news, especially if you need to sell fast. Understanding what you can expect will make the process of selling your home less stressful and help to eliminate any tax surprises.

Common misunderstandings include the following:

• You do not have to be living in the home in order to take the exemption for taxation on capital gains.
• There is no age restriction on claiming capital gains.
• You are not required to reinvest the profit in another home.
• The number of homes you can take the exemption for is limited to just one at a time.

Perhaps one of the most important misunderstandings is what to do about moving expenses. The amount of money you can deduct in relation to moving is not unlimited. The expenses must also be work-related, and not simply the costs of moving to another town for personal purposes. Once you are aware of what tax benefits are available to you when selling your home, you will be ready to call a realtor. Selling a home can be overwhelming, but when you are armed with accurate information, at least the tax implications will be clear. If you have questions about how selling your home will impact your taxes, call a legal tax professional for answers.

Let the professionals at Nielsen Law Group help you make sure you take full advantage of all the benefits legally available to you when selling your house. Call (480) 888-7111 or submit a web request here.