Tuesday, November 6, 2012

6 Tax Facts Homeowners Should Know

This is the time to start thinking about how your 2012 is going to be presented to the IRS at tax time.  Here are 6 tax facts that all homeowners should know!
 
1.  If you have owned your home and lived in it 2 of the past 5 years prior to selling it, you can generally deduct up to $250,000 of the gain from your income ($500,000 if you are filing a joint return in most cases).
 
2. You are not eligible for this exclusion if you sold a principal residence within the past 2 years and excluded the allowable gain from your income.
 
3.  If you can exclude ALL of the gain from the sale of your principal residence, you do not have to report the sale on your income tax return.
 
4. If you have a sale on your principal residence that exceeds the allowable deduction, it is taxable.
 
5. You can't deduct a loss from the sale of your principal residence.
 
6. Special rules may apply when you sell a home which you received the "first time home buyer credit.  (See IRS publication 523, "Selling Your Home" for details)
 
Nancy Puder is the broker and owner of Signature Properties, a prestigious real estate sales and management firm in Arroyo Grande, CA.  You may contact her at Nancy@NancyPuder.com or (805)710-2415 Your calls are always welcome!
 
 
 

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