I know there are tax benefits to buying a new home, but are there similar tax benefits or write-offs for selling a home?
This is a great question, and one a REALTOR® is often asked. Since I am not an accountant or tax professional, I am only speaking from my first-hand experience of owning homes, and knowledge I’ve gained through real estate transactions. If you itemize your taxes, you can deduct all of your selling expenses. That would include commission, title insurance, deed preparation, recording fees, and any of the normal seller expenses. However, if you have lived in your home two of the last five years, you may profit up to $250,000 for a single person or $500,000 for a married couple without owing taxes on that profit. If you are selling an investment property or a home you have only lived in for less than two years, you should itemize all of those expenses. It is important to save your HUD Settlement Statement from your closing for your taxes. I happen to think that the IRS tax code change in the late 1990s was one of the best benefits given to Americans. It has allowed those who are nearing re
