This is the perfect time of year to be thinking about your finances and gathering all of the receipts and reports that you need to put together your tax filing. Make sure you don’t miss these tax benefits if you sold your home this year.
Selling Costs
It is possible that you will owe taxes on the profits that you make from the sale of your home. For this reason, it is important to be thinking about which selling costs you can deduct. According to the popular legal advice website Nolo, you can deduct things like: your agent’s commission, inspection fees, legal fees, escrow fees, advertising costs, and title insurance.
Moving Costs
If you are relocating for work and have to hire a moving crew and truck, you might be able to deduct your moving expenses. Things like: storage costs, transportation costs, and even lodging if your move is very far.
Property Taxes
The IRS allows you to deduct the property taxes for the days up to, but not including the date of the sale of your home.
Home Improvement Costs
It might be that the buyers of your home stipulate that you do some home improvements as part of the terms of the sale.
The costs of those home improvements could be a tax deduction. For instance, if you replace the HVAC system or improve the roof.
Tax deductions will vary from state to state and can even be different depending on the year. It is important to work with a CPA if you are filing taxes that include several deductions so that you are sure to make the right deductions.
This benefits you in many ways but, most importantly you will be sure to claim deductions that are appropriate but also you will be told about deductions that you may not have known about. It is always best to work with a professional when it comes to real estate and taxes.