Sale of Home Tips

September 7th, 2017 → 12:51 pm @ // No Comments

Many clients have the question, “Do I have to pay taxes on the profit I made selling my home?” As long as you meet certain criteria, you may be able to exclude up to $250,000 in gain from selling your home. If you file a tax return as married filing jointly, you may be able to exclude up to $500,000 in gain.

How do I qualify for this tax exclusion? You must have owned and lived in the home for at least two years during the five years prior to the date of your sale. You must not have excluded the gain from any other home during the two-year period prior to the sale of your home.

Do I have to report the home sale on my return?
You generally need to report the sale of your home on your tax return if you received a Form 1099-S. To avoid getting this form, you must give your sales agent some assurances any time before February 15 of the year after the sale that all the profit on the sale is tax-free. We just helped a client respond to an IRS’ notice. He filed his tax return on his own. …Read More

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