There are five tax deductions you can take advantage of if you’re putting your home on the market.
Here are five tax deductions you can take advantage of when selling your home:
1. Selling costs. These consist of the agent’s commission, title and legal fees, advertising costs (which you don’t pay if you work with M. Stagers Realty Partners), etc., and you can deduct all of them!
2. Home improvements. The key thing to remember is that these improvements must have been done within 90 days of selling the home. We homeowners always laugh about the fact that we tend to wait until the last minute to make updates to our houses before selling them and never get to enjoy those updates, but as it turns out, there’s a good reason to wait. If you’ve repainted, installed a new water heater, or made any other repairs to your home within 90 days of selling it, you can deduct those costs.
3. Property taxes. Of course, don’t forget that property taxes in Texas are prorated, which means they’re paid in arrears.
4. Mortgage interest. As per the 2018 tax code, this amounts to $12,200 for a single person and $24,400 for a married couple.
5. Capital gains. If you have a capital gain from the sale of your home, you may qualify to exclude up to $250,000 of that gain from your income if you’re single, or up to $500,000 of that gain if you file a joint return with your spouse.
Each person’s situation is different, so remember to speak with your CPA about these deductions before pursuing them when selling your home.
As always, if you have questions about this or any other real estate topic, don’t hesitate to reach out to me. I’m here to help.