Tax Implications
So you've worked out how to sell your own home and now you're an ace at selling real estate. What's next? Well you should find out how selling your home affects your tax returns, as selling a home could have a major impact on both your federal and state taxes.
Tax Advice
You should check with a tax consultant who will be experienced in these matters and can therefore guide you on the factors that can affect the tax return or payment from the sale of your home. Some of the main things that can influence your tax returns include they way in, which you originally purchased your house. Using an inheritance or taking the house because it was a gift from a friend or relative is treated in a different way than buying the house with your own hard earned money.
Tax Effects
Whether you used your house mainly for running a business or as a personal residence, for you or a family, can also have a baring on the amount of tax that you may need to pay. Any improvements, additions or alterations that you had over the course of your time living in your home can also influence the outcome of your federal and state tax returns.
The sale of your home can also in certain cases exclude up to $250,000 in capital gain ($500,000 for married couples filing a joint return) on the sale of property that was your principle residence for at least two years.
