Do you know if you qualify to exclude your gain, after selling your home? If you do not know whether you would qualify to exclude gain on your taxes after selling your home, then we are here to help by providing you a few real estate tax tips. Read below to get informed.
You can qualify to exclude from your income all or part of your gain, once you sell your home.
To be excluded, you are required by law to meet the ownership and use tests. The ownership and use tests mean before the 5-year period before the sale of your home you must meet the following requirements:
· You must have owned your home for two years; this will make you pass your ownership test.
·You have to have lived in your home for at least two years to pass the use test.
If you gain from the sale of your home, you could be qualified to exclude up to $250,000 of the gain from your income. If you are able to exclude all the gain, you will not need to report anything abut the sale on your tax return. If you cannot exclude the gain, it is taxable. It would be reported as a Schedule D (Form 1040).
You will not be able to deduct a loss from the sale of your main home.
To be sure you get the most out of the sale of your home, contact Jeremy Walsh Real Estate.
If you have any questions, please contact Jeremy Walsh Real Estate by calling 443-610-5722 or click here today!
You need to be exclusively represented and have Jeremy Walsh (located in Baltimore, Maryland) on your side to handle all of the important details for You!