With tax season in full swing, I wanted to share this article from Realtor.com with some useful tax deduction tips to make sure you are aware of.
5 Sweet Tax Deductions When Selling a Home: Did You Take Them All?
Are there tax deductions when selling a home? You bet—and they can amount to sizable savings when you file with the IRS. So whether you’re selling your home soon or sold it last year, you’ll want to know all the tax deductions (not to mention tax exemptions or other write-offs) at your disposal.
Here’s a rundown of just some of the things you should to know:
1. Selling Costs
You can deduct most costs of selling, including legal fees, Escrow fees, advertising costs, and Real Estate commissions. As always, you want to check with your financial advisor.
2. Home Improvements and Repairs
Did you renovate a few rooms to make your home more marketable? This includes painting the house, repairing the roof or water heater, or anything that remains useful past a year. But there’s a catch, and it all boils down to timing. If you needed to make home improvements in order to sell your home, you can deduct those expenses as selling costs as long as they were made within 90 days of the closing.
3. Property Taxes
If you were dutifully paying your property taxes up to the point when you sold your home, you can deduct the amount you paid in property taxes for the time you owned it.
4. Mortgage Interest
As with property taxes, you can deduct the interest on your mortgage (up to a maximum of $1 million) for the portion of the year you owned your home.
5. Moving Expenses
If you sold your home in 2017 in order to move for a job change, you can deduct those expenses.
From Realtor.com, read the entire article here.
