Real Estate Tax Tips

Monday, August 18, 2014

Real estate deals result in making a profit.  Is the gain taxable or not?  Below are tips from real estate tax experts that you may find helpful if you sell your home this year.

Capital gain, which is a profit that results from the sale of your home, can be excluded from your taxes if the home was owned and used as your primary residence for a minimum of two out of the five years prior to the sale of the house.   According to the IRS, the maximum gain a taxpayer can exclude is $250,000. And, if the capital gain is deemed not taxable, there is a chance you do not even need to state the sale your tax return.  However, you will need to report the sale of the home to the IRS if you are unable to exclude all or part of the gain.  The home sale should also be reported if you do not claim the exclusion.

By law, a taxpayer can exclude the capital gain from a real estate sale (only of a main home) one time in a two year period.  Additionally, if you own multiple homes, only the sale of the main home can be excluded.  On the other hand, if you lost money on the sale of your home, this cannot be deducted.

The Strategic Tax Lawyers have tax attorneys and experts in tax-related fields that can offer assistance with capital gains and taxes. Call the Strategic Tax Lawyers today for a free consultation at (800) 669-4775.