Login to your Account
Search Santa Fe Homes New Listings Newly-Priced My Listings Neighborhoods Las Campanas TESUQUE HISTORIC EASTSIDE Search Land

Tax Tips to Keep in Mind When Buying or Selling a Home

tax tips

With all the expense that can go into buying and selling a home, it’s good to be aware of what you can claim and how a home can benefit you come tax time. When the New Year rolls around and you’re sitting down to the task of completing your taxes, here are a few things that you’ll want to keep in mind.

Gaining from Capital Gains
If you’ve made money off the sale of your home through a capital gain, it’s possible that you may be able to exclude this amount from your tax filing. If you’ve lived in the home you just sold for at least two of the five years before the sale date, not having to report this amount on your taxes may come as a financial win.

Reporting Your Gain
If you have not lived in your home for two of the five years, you must report the sale of your home and the capital gain when you file your taxes. This is necessary whether you decide to claim the amount. If this happens to be the case for you, it’s a good idea to educate yourself on ‘Net Investment Income Tax’ before filing your return so you can ensure your claim’s accuracy.

A Two-Year Claim for Capital Gain
While there is a great financial benefit in not having to report your gain in all situations, it’s important to be aware that you can only exclude any gain you’ve received from a home sale every 2 years. So, if it happens to be the case that you’ve moved more than once in the last few years, you must report any amount that you’ve made from these home sales.

Selling Your Home at A Loss
The boon of a capital gain is certainly ideal if you’ve made some money on your home, but if you’ve sold your home for less than you paid, you won’t be able to claim this. While the result may be a bit disheartening, this amount cannot be deducted off your tax return.

Beyond the benefits of buying or selling your home, there are ways that your tax filing can be more pleasant next year if you know some of these tips. If you think you may be perusing the real estate market soon, you may want to contact a real estate professional for more information

moo thorpe headshotFor more helpful tips please contact me at 505.780.0310, or email me at moo@moothorpe.com and I will be happy to assist you.

Whether you are selling your home, or buying a home, I can help you with your endeavor

 

 

About Me Santa Fe Real Estate Market Reports Market Snapshot News About Santa Fe