Tax Write Offs For Sellers

Believe it or not, April is already more than halfway complete and the end of tax season is coming
to an end. If you haven’t filed for your tax return, then now is the time to get organized.
One of the most stressful aspects of filing for your taxes is, quite obviously, determining
what types of write offs and exclusions you’re eligible for. After all, the goal is to
maximize your refund.

Several rather tax write offs that are more relevant than ever this year, given the fact
that just under six million homes were sold in the United States in 2018, pertain to real estate.
If you sold a home in 2017, then tune in for information on how to find out if you’re qualified for
these tax write offs for sellers.

You hired a real estate agent
Most people, when selling their home, choose to hire a real estate agent to do the heavy-lifting
for them. Skilled real estate agents agents are a huge asset to people trying to sell their homes
quickly and at a good price. However, the commission that follows suit after the sale is rarely a
small number. Luckily, come tax season, you can write off this commission as well as costs
associated with inspections, closing, and advertising.

You sold your house
Chances are, if you hired a real estate agent, then you were successful in selling your home,
especially in today’s competitive housing market. You may think that because homes aren’t
inexpensive, you’d have to pay some pretty hefty taxes after the sale. Luckily, this isn’t the
case at all as long as you meet a few qualifications. If you’ve lived in the property for two
or more years and you haven’t used this exemption on another home that you sold within
the past two years, then you do not have to pay taxes on up to $250,000 of the sale if you’re
filing as single or up to $500,000 if you’re filing jointly—a pretty nice deal, especially if you’re
dealing with seller’s remorse.

For those who lived in the property they sold for less than two years, you’re not automatically
disqualified. If you have a legitimate reason for why you were unable to stay for the expected
duration, you may still be able to receive a portion of this exemption. Some reasons include,
but are not limited to, getting a divorce, losing a job or being relocated, and contracting a
serious illness. If you qualify for a reduced exclusion, then you’d be exempt from paying for a
portion of the $250,000 or $500,000 that is proportionate to how long you lived in the house.

Understanding taxes isn’t something that the average person enjoys.
Turner Jones Finance works hard to maneuver and explain the ever changing world of finance
to help our readers navigate it easily. If you sold your home in 2017, then you likely qualify
for several tax benefits; make sure to dig into your own situation to maximize
your 2018 tax return!