REI Branded Home Buyer Spokane Wa
Sell Your House Fast Spokane Wa? Here Are Some Tax Tips
REI Branded Home Buyer Is not a tax consultant we are only sharing tips and some of our experiences. We Buy Houses in Spokane Wa With that being said! Lets get into the good stuff!
Get ready, folks! Tax season is just around the corner! If you’re planning to sell your house in Spokane, check out these awesome tax tips for home sellers! Just a heads up, this article is meant to inform you, not replace professional advice.
For any specific questions, make sure to reach out to a reliable tax expert or the IRS!
Not All Profits Are Taxable
You can leave out a big chunk of your profits from taxes if you meet some specific criteria. Usually, you can exclude $250,000 on your tax return, or up to $500,000 if you’re filing jointly. Just keep in mind, if you sell at a loss, you can’t deduct that amount.
This deduction is only for your main home and can be claimed once every two years. To be eligible, you need to have lived in the house for at least two out of the last five years.
It is important that whenever you move, your address is updated with the IRS.
Other Exclusions
If you don’t quite hit those requirements, there’s still a chance to exclude some of your profits from your income tax. There are various special conditions you can qualify for to get a prorated, tax-free gain. If you have to sell due to health issues, a job change, or other unexpected situations, you can write off part of the profit.
Reporting the Sale
If you get a 1099-S form from the closing agent, you have to report the sale. This form tells the IRS about the money you made from selling real estate. To skip reporting, ensure you can exclude all your profits. Let the agent know during closing that they don’t need to issue the form. Remember, even if you can deduct all your profits, if the form is sent out, you still have to file it with the IRS, even if you don’t owe any taxes.
Preferred Tax Consultants
Omlin Gunning & Assoc
9515 N Division St #200, Spokane, WA 99218, United States
Phone:(509) 467-2000
Email: cpa@ogacpa.com
Capital Gains Taxes
When you sell a property or house that you haven’t owned for long, you might have to deal with capital gains tax. This tax is based on how much profit you make. If your income is on the lower side, you won’t owe any capital gains tax. However, if you’re in a higher tax bracket, you could end up paying around 20%. Also, short-term assets usually get taxed just like regular income.
First-Time Homebuyer Credit
If you bought and sold your home within certain dates, you might need to return some or all of the credit you got. Usually, if you sell the house within 36 months of buying it, you’ll have to pay back that credit when you sell. Special rules apply and can be found in Publication 523 from the IRS.
Deduct Selling Costs
When you’re selling your house in Spokane, you can deduct a bunch of reasonable expenses related to the sale. This covers things like closing costs, any upgrades you made to boost the sale, assessments, marketing expenses, agent commissions, and more. Make sure to keep a record of every dollar you spend while selling your home. When tax season rolls around, these deductions can really add up!
Regardless of when you decide to sell, it’s always a good idea to get advice from the pros. Chat with your agent, accountant, and lawyer to ensure you’re getting the best deal possible.
Don’t let tax worries weigh you down when you’re putting your house on the market in Spokane. Chances are, Uncle Sam won’t be taking a big chunk of your profits.
Do you want to sell your house in Spokane? We can help! Send us a message or give our office a call today! 509-769-3439
Author: George Anderson
George Anderson is a real estate investor and contractor who loves to help people by sharing valuable insights about real estate. His mission is to empower home sellers with the knowledge they need to make informed choices regarding their real estate challenges.