Can selling my property impact my taxes?

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Maria Pia Mcleod P. A.

Date Published: 2019-11-12

In most cases, for the earnings received at the time of selling your property, you will have to pay taxes. However, if the gain is given through the sale of a house, you may not have to declare taxes for that profit. For this reason, it is important that you keep in mind certain aspects when selling your house:

  1. Exclusion of profits: this resource consists in the partial or total exclusion of the profits from the sale of the house. You can only apply if you owned and used the home at least two of the five years prior to the date of sale.
  2. Exceptions: there are exceptions for people with disabilities, certain members of the Armed Forces, certain governments and Peace Corps workers.
  3. Do not report the sale: It is not necessary to report the sale to the Internal Revenue Service (IRS) on your tax return if the gain is not subject to taxes.
  4. When is it necessary to report the sale?: If you can not exclude part or all of the gain, you must report the sale on your tax return.
  5. Exclusion frequency limit: can only be excluded once every two years.
  6. Only the main house qualifies: If you own more than one house, you can only exclude the income from the sale of your main house.
  7. If the sale of your home resulted in a loss: You will not be able to deduct the loss on your tax return if you sold your main house with a loss.
  8. Report the change of address: You need to change your address at the IRS after selling your home and moving.

This article is made for informative and divulgative purposes. For this reason, it is important that before making any decision, visit or contact a certified specialist in the field, since the opinion of the expert is the one that should be considered.
 

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The Real Estate Agent will ask you questions at the time of your hiring, such as: Do you want to buy another property with the money you get from this one? In case you are currently inhabiting the property, how long after the sale do you need to vacate it?...

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