As the economy continues to rebound, more homes are coming on the market. If you are looking to take advantage of more favorable market conditions by selling your home, here are five helpful tax tips that were recently released by the IRS and published in Inman News.
- Timing is everything. If you applied for and received a first-time homebuyer credit, remember that home must be your primary residence for 36 months from date of closing. If that status changes during that time period, the full credit must be repaid.
- Any profit from your home can usually be excluded from your taxes if it was your primary residence for two of the five years before its closing date.
This exclusion is only applicable if you didn’t apply it to the sale of another property during the prior two-year time frame before the sale of your current home.
- If it is legal to exclude the entire gain from the sale of your home, then it isn’t necessary to list it on your tax return.
- After your home sells and you move, don’t forget to update your address with both the IRS and the USPS to insure you receive any correspondence from the IRS concerning this sale.
Now with this information under your belt, it’s time to choose an experienced real estate agent to assist you in getting your home listed and sold at the right price. Contact one of the experienced and knowledgeable agents at Lang Realty, the leading real estate company in South Florida, by calling 866-733-2214.