Tag Archives | Taxes

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 Financial Advantages of Buying vs. Renting

iStock_000052978578_Medium_Buy or rentEven though renting costs far less initially for most people, buying a home has much greater life-time financial benefits.

Consider taxes: Renters pay much more in taxes than homeowners. Homeowners can deduct mortgage interest (which is going to be most of your monthly mortgage payment initially), as well as real estate taxes. This means most of your monthly shelter costs are going to be tax deductible. Read More

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