Learn how your home sale can help you to save on your taxes!
The April tax season is over! However, it’s never too early to start preparing for next year. Spring and summer are the most popular times of year to buy a home. However, if you’re a seller, it means that you may be eligible for a few tax breaks. As you get ready to sell your home, ensure that you keep your 2016 taxes in mind. Check out these tax deductions for sellers and keep them on hand for next year.
Difference Between Profits and Selling Costs.
Your selling costs deduct from your total profit on your home sale. Keep careful records of any associated selling fees. These can include your realtor’s commission, legal fees, escrow fees, title fees, inspection fees, and anything else that you may have spent to sell your home. When selling your home, be sure to keep meticulous records of such fees to use next April.
If you must sell your current home to move for work, you may be able to deduct some of your moving costs. From hotel bills to transportation costs, if it’s associated with your relocation, you may be able to claim it as a deduction. Save any receipts from your relocation so that you can use them on your April taxes.
When you own a home, you pay property taxes. When selling your home, you then no longer own the house. So, you can deduct your property taxes for the amount of time you lived in your home before you sold it. Be sure to keep a record of your property taxes as well as the exact date that your home sold.
As you sell your home, maintain records. File them away in a safe place so that your taxes are a breeze come next April. If you’re in the process of looking for a new home, make sure you have experts on your side. To get dedicated service paired with top-tier escrow services when closing an escrow deal, contact Brighton Escrow. Our Hermosa Beach, California team is committed to helping you make the most of your escrow process.