What are the Tax deduction when selling a home in Florida
Tax deduction when selling a home in Florida should be considered in your tax filings that are just around the corner and due on April 15 each year. Always speak with your accountant regarding any tax related question.
When you sold your home in 2015 you may want to read this.
We already send our clients their settlement statement (known as HUD1 or closing statement) from their closing in 2015 when they sold or bought their home. If you are a client of ours and didn’t receive a copy of the closing statement don’t search we have a copy for you available.
Either way, if you were a buyer or seller in 2015 look for the settlement statement that has all cost itemized you paid at closing.
Just have the settlement statement available for your accountant when filing your tax returns as a buyer or a seller. If you bought or sold a home in 2015 speak to your accountant if they are aware of any additional tax deduction we don’t know off.
In general, as a seller, you be entitled to tax exemption when selling your home. For a single person the tax exemption is $250,000 and for a married couple $500,000. Meaning if you bought and owner-occupied the home for $200,000 and more than 2 years and now going to sell it for $450,000, you would not own and pay taxes on the sale. Speak with your tax consultant about more detailed information.
Going back to what are the tax deduction when selling a home in Florida in 2015 here are the deduction that should be considered and claimed.
Tax Deductible Seller Expenses:
- Any selling commission paid to a real estate brokerage.
- Any advertising or marketing costs associated with the sale of your home.
- Any legal fees — attorney fees, transfer or stamp taxes, owner’s title insurance, recording fees and survey fees paid by you.
- Any mortgage points or other loan charges you paid that would normally have been the buyer’s responsibility — closing costs and prepaid buyer mortgage fees.
- Any special assessment that is not for repairs or maintenance.
- Any non-maintenance related home improvement expense that improved the value of your home like new windows, new HVAC or new roof.
In addition, there are tax deduction available if you remodeled or repaired your home. This cost can sum up so let your tax preparer know all the cost associated with selling or buying your home. This information on Tax Deduction When selling or buying A Home does not represent any tax advice and you always should consult with a professional preparing and advising you in tax related matter.
If you remodeled or want to remodel your home receive a sheet with additional allowed tax deductions below.