Real Estate Sales and Taxes

Selling a home can have a major impact on your tax returns. A tax consultant can help you determine the effects that selling your home would have on you. Here are some factors that could effect your taxes:

  • Whether you purchased the home or acquired it by gift or inheritance
  • Whether you used your home partly for business or rental
  • Costs associated with selling your home
  • Home improvements or additions, which may help to offset capital gains
  • The sale of your home. In certain cases you can exclude up to $250,000 in gain ($500,000 for married couples filing a joint return) on the sale of property that was your principle residence for at least two years. Generally, you can use this exclusion every two years in the USA.