Have you been thinking about selling your home recently? If so, have you brushed up on some of the tax information? Who has the time to look into all of that? Well we took the time to bring you a few tips that can help save you some money!
First know what you can exclude:
- Individuals can exclude up to $250,000 in profit from their primary residence
- Married couples filling jointly may exclude up to $500,000, which means not paying tax on $250,000 of the profit
Second, to use the home owner exclusion you must:
- Have owned home for 2 out of the last 5 years
- Lived in it as a primary residence for at least 2 out of the 5 years
- Not have taken the exclusion within the last 2 years
You may not qualify for a full exclusion, but do not fret! You may qualify for a partial or reduced exclusion if you have sold because of:
- Divorce
- Change in employment
- Change in health or other unforeseen circumstances
For more information just click the link the below
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