In most cases you won't have to pay any capital gains tax on your home so long as your profits aren't in excess of $250,000 ($500,000 for married couples.) That's great news for most, but in the event you don't qualify for the 121 exclusion, make sure to deduct all your selling costs from your profits, this can include:
That's if you don't qualify for the capital gains tax exclusion under U.S. Code Section 121 or your profits are in excess of $250,000 ($500,000 for married couples.) As a general rule of thumb, so long as you've lived in your house for 2 years out of the last 5 years leading up to the sale, you qualify, but always do your own research and consult your own tax professional to be sure.
- Your realtor's commission
- Advertising costs
- Legal fees
- Escrow fees
- Inspection fees
you move because of work, you may be able to deduct some of the moving expenditures from your taxes
The 121 exclusion is a pretty great deal, but it can get even better as home sellers also have other tax deductions they can take advantage of. For example if you move because of work, you may be able to deduct some of the moving expenditures from your taxes.
Hope you found this helpful, if you have any questions I'm always here to do free planning sessions. I sell all over San Diego County and our main niches are move up and move down buyers. If you are thinking of moving and would like to set up a free planning session, please click the link below:
Or if you have any questions and would like to give me a call, please don't hesitate to reach out at: +1 (858) 204-7259