Though most home-sale profit is now tax-free, there are still steps you can take to maximize the tax benefits of selling your home. Learn how to figure your gain, factoring in your cost basis, home improvements and more.
Note that if you’re a widow or widower who doesn’t remarry before selling your home within two years after your spouse’s death, you generally qualify to exclude up to $500,000 in gains, as if your spouse were still alive.
After each tragedy, scammers arrive on the heels of the catastrophes, trying to take advantage of people’s misfortune. Whether you’re in the disaster area, or want to help those who are, these tips can help you avoid falling prey to disaster prompted con artists and crooks. (Oct. 4,...
Taxes on Home Sales WHEN YOU SELL YOUR primary residence, you can’t claim a tax loss if you receive less than you paid. But you can avoid capital gains taxes on $250,000 of appreciation, or $500,000 if you’re married filing jointly. To qualify for the $250,000 or $500,000 ...
In most cases, the property basis is the purchase price. However, when you inherit property you get a break. Instead of inheriting the decedent's basis, you can use thefair market valueat the time the owner passed on. For example, suppose your mother leaves you a house she bought for ...
Some additional notes on how selling a home may affect your taxes: Unfortunately, losses on sales of personal residences are notdeductible. If you sold a home prior to August 5, 1997 and took advantage of the old rule that let home sellers put off the tax on their profit by"rolling" the...
Remember, tax tasks and tips don't stop after you file your annual return! All About Kay OK, some about Kay Kay Bell— Native Texan(the blog title totally makes sense now, right?). Professional journalist. Tax geek. LinkTree My Other Accounts Tick ... Tick ... Tick Tax Season ...
After reading all of this you may be thinking, “I’d rather just answer the questions in the software instead of doing all that work”. For many taxpayers, that is just fine. But, if you want optimal results – particularly if you have a complicated tax situation – then it is better...
Though transferring ownership counts as a gift for federal gift tax purposes, the value of the gift is reduced by the fact that you reserve the right to live in the home after the initial term of the QPRT ends. Because of the way the gift is calculated, QPRTs actually work more ...