Buying or Selling: What to Know for Tax Season
HELOC Home Improvement Home OwnershipIf you are like us, now is the time you are beginning to file your taxes. We know this process can sometimes be tedious; which is why we have put together a list of tax break opportunities to relieve some of the stress. Check out some deductions that may apply to you if you have bought or sold a home.
Did you know you can write off your mortgage interest? It is true! This can be done from the time you have purchased, sold, or paid off the loan.
While you cannot claim any deductions for home improvements until the sale of your home, it is still important to be aware of this tax break. When you are ready to sell, you can calculate all home improvements made since the time of purchase, so be sure to keep track of your receipts!
If you have lived in your home for at least two of the five years prior to selling, you may qualify for a big break. With the sale of your home, you can make up to $250,000 (single) or $500,000 (married) without tax implications. In fact, the profit may be completely tax-free.
While this is only a small list of deductions, there are many others you may be able to take advantage of as a homeowner or seller. Be sure to work with your tax accountant, real estate agent, and/or mortgage originator to talk through all of your options.