Selling Your Home? Follow IRS Tax Attorney Tips to Save
Are you looking to sell your home anytime soon? Moving away can be very stressful from a tax point of view. But there are a few tips that IRS tax attorney, Tax Tiger, wants you to be aware of when filing your taxes. Keep these tips in mind when filing your taxes after selling your home and making a profit.
- Making money from selling your home
If you happen to sell your home and make a profit – you may be able to exclude part or all of the profit from your income. This is only applicable if you have used the home for at least two years prior to the date of sale. You can normally exclude up to $250,000 of the gain from your income.
- Exclude away
You have the option of excluding $250,000 or $500,000 for a joint return, of what you profited from the Net Investment Income tax, which only took affect recently.
- No need to report
If your home can be excluded, then there is no need to put that in your tax return
- You must report
If your home can’t exclude all of its profit or you choose not to exclude it, it is important that you report the sale of your home on your tax return.
- Update your information
Don’t forget to update your information with the IRS and U.S. Postal Service once you officially sell your former home and move into your new home. The Change of Address form 8822 is what you will use to inform the IRS.
Selling your home and moving into a new home isn’t easy, but getting your taxes done with IRS tax attorneys can be. Dealing with the whole moving process is a tough one without having to add the stress of taxes on top. If you handle your taxes on your own, take these tips from a professional so you can gain the most out of your home gain. If there are any problems with the IRS regarding your return, Tax Tiger is here to help relieve your worries and resolve those issues.
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