Jenny Gonzalez
SOLD A HOME RECENTLY?
DO NOT MISS THESE TAX DEDUCTIONS
D
o you know that there are some tax deduction benefits for you when you sell your home? Well, that’s right, and you should take advantage of them. Unfortunately, not everyone knows about this. Therefore, when they sell their homes, they pay more than the necessary tax required of them. However, if you desire not to take advantage of these tax deductions, you should check out the following rundown to ensure you don’t miss any of them:
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SELLING COSTS
This is one of the tax deductions that you’re entitled to. It is a kind of deduction that is applicable to sales associated with properties. More so, for it to be applicable to your case, you must have resided in the home for over two years of the five years that preceded the sale. Another criteria for this is that the house must not be an investment property; instead, it must be a principal residence. If you consider all these criteria and you fit in, then you shouldn’t miss out on the tax deduction that comes with selling cost. So, what cost are we referring to when we talk about the selling cost? They are costs associated with the selling of the home, and they include escrow fees, legal fees, real estate agent commissions, and advertising costs. You should deduct all these costs before paying tax. What you need is to calculate the cost and subtract them THE POWER IS NOW MAGAZINE | OCTOBER 2020
