In case you haven’t heard, we’re in the thick of tax time. If you’re in the midst of selling your home or property during this busy season, the IRS actually does provide you as the homeowner with a few opportunities to deduct expenses from the sale of your home. Good news!
Read, and if you fallen into any of these ‘buckets’, you may be in luck:
Discount Points: Did you have the experience of refinancing your mortgage and paid points using cash to bring down the interest rate? If yes, the IRS will allow you to deduct a portion of those points each year until that loan is paid off. When you sell your home and simultaneously may off your mortgage, you have the ability to deduct items you hadn’t all at once.
Your relocation/moving expenses: Get a new job in another city and selling your home at the same time? The IRS may allow you to deduct moving expenses. There are certain qualifications, however. The new home you are buying must be 50 miles or closer to your new job than your former place of residence was. If you qualify under this rule, you can write off any mileage you drive, travel expenses, what you pay a moving company and any related moving expenses.
It may not seem like much, at first, but moving into a new home and costs related to selling your current property can add up, and quickly! We wanted you to be aware and be sure to inquire with the person who prepares your taxes if this is the case. You may be able to save a few valuable dollars in the long run.