Taxes, a topic almost every single American views as cringeworthy. When selling something expensive, especially a home, there are a few different sets of taxes you’ll need to be educated in. In a recent article sponsored by Blown Mortgage, JMcHood outlines what tax exclusions are present when buying a home, when to ask for an exclusion and how to tell if you have any capital gain. In case you have any further questions regarding taxes and selling your home, this article has provided a few additional resources such as live help and tax simulation calculators.
- If you meet certain criteria, the IRS will exclude you from paying capital gains taxes on the sale of a home.
- You may be eligible for a reduced exclusion if you are selling the home due to reasons beyond your control, such as a health issue or a divorce.
- If you do have to pay capital gains, you can still deduct certain expenses, such as depreciation, energy credits, and losses that you have claimed on your insurance.
“If you made more than the allowed exclusion, you will have to pay taxes on the difference.”