Monday, June 28, 2010

Income Tax Considerations on Sale of Your Home - Consult with Your Income Tax Professional

income tax on sale of your home

 
Selling your home always involves income tax considerations for possible gain and what is taxable.  

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The IRS has a good web site with information about income tax and form 523 on sale of your home - click here for link.  

Taxable Gain on Sale of your Home must be considered for possible exclusion of gain on sale up to $250k for sole taxpayer and $500k if married taxpayers.

  • Rules for excluding the gain.
  • Ownership and use test - normally 2 of past 5 years.
  • Exceptions to ownership and use test.
  • Qualified use the property.
  • Non-qualified use.
  • Business use of part of the home.
  • When property is used partly for business or rental. 
  • Reporting Sale to the IRS.

Check out other valuable information: 

  • US Homebuyer tax credit expanded (concluded as of April 30, 2010).
  • Recapture of homebuyer income tax credit for 2008 - form 5405.
 
 
 
 

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Source:  Internal Revenue Service; www.IRS.gov.  We do not provide income tax consultation or services.  This is for information only and not providing of legal or accounting services. You must contact your income tax lawyer, income tax professional or CPA, to determine qualifications and facts in your personal situation. 

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Harrison K. Long, REALTOR® & broker, Explore Group, Coldwell Banker Previews, Irvine, CA.  CA DRE #01410855.  ExploreProperties@gmail.com. 949-854-7747.  National Association of Realtors, California Association of Realtors, and Orange County Association of Realtors.  California State Bar Association #69137. Serving Laguna Beach, Irvine, Newport Beach, Newport Coast, Costa Mesa, and South Orange County.

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www.ExploreOCHomes.com 

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