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Tax Aspects of Home Ownership: Selling a Home

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For tax purposes, you need to pinpoint your adjusted basis to determine whether or not or not you could have gained or misplaced in the sale. Essentially, the IRS does not require the real estate agent who closes the deal to use Form 1099-S to report a house sale amounting to $250,000 or much less ($500,000 or much less for married couples filing jointly). To avoid getting this form (and having a duplicate despatched to the IRS), you have to give the agent some assurances at any time earlier than February 15 of the yr after the sale that each one the revenue on the sale is tax-free.

For instance, if you haven’t attended to minor points like a broken doorknob, a possible buyer may wonder whether the house has larger, costlier issues that haven’t been addressed either. So many patrons look for properties on-line nowadays, and so lots of those properties have pictures, that you’ll be doing yourself an actual disservice should you don’t offer photographs as properly. At the same time, there are so many … Read More