Tax Tips

Something to keep in mind when planning to sell

forsalePlanning on selling your home? On top of packing and cleaning, you’ll need to determine whether you have a gain on the sale of your home.

To do this, you must figure out your adjusted basis (i.e., the original purchase price of the residence, purchase expenses, improvements, additions, assessments and more). Take the final selling price and reduce it by your adjusted basis to calculate your gain or loss from the sale.

If you have a gain, you may qualify for an exclusion of income for all or part of the gain. In general, if you have owned and used your home as your main residence for two out of the last five years, you are eligible to exclude up to $250,000 of gain from income ($500,000 for married taxpayers filing jointly).

You are not eligible for the exclusion if you excluded the gain from the sale of another home during the two-year period prior to the sale of your home.

Be sure to consult me to help determine the items that may affect your home’s adjusted basis.