Tag Archives | Tax deductions

Tax Deductions Available to Sellers

3 people looking over paperworkThe biggest tax benefit available to home sellers is an exemption against capital gains taxes on any profit you make on the sale up to $250,000 ($500,000 if married and filing a joint return). You must have lived in the home as your personal residence for 2 out of the last 5 years before the sale. If you meet these criteria, any profit you make on the home up to $250,000 is exempt from taxation under Section 121 of the U.S. tax code. Read More

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The Tax Advantages of Home Ownership

There are several tax advantages to owning a home. For most people, the biggest tax break will be the mortgage interest tax deduction.

As a home owner, you will be able to deduct mortgage interest (which is going to be most of your monthly mortgage payment initially) on your federal tax return. You can also deduct any points paid and the interest on a home equity loan or line of credit or second mortgage. Read More

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