Here are a few tax tips to keep in mind when selling your home this year:
1. If you have a capital gain on the sale of your home, you may be able to exclude the gain from your tax return. You can exclude up to $250,000 for individual returns or $500,000 for joint returns.
2. If the gain from your home is not taxable, you do not need to report the sale on your tax return.
3. If the gain is taxable, you must report it on your return.
4. You can only exclude the gain from the sale of your main home.
5. You can only exclude the gain from the sale once every two years.
6. If you claimed the first time home-buyer credit, then special rules apply.
7. If you sell your home for a loss, you cannot deduct it.
Contact our office at 816-524-4949 or visit our website at www.Hoorfarlaw.com.