If there is one sure thing about life from a financial standpoint, it is this: taxes and profits go hand-in-hand. This includes the sale of a home. However, if you meet certain criteria, there are enough credits, exceptions, and exclusions to make the entire process surprisingly light on taxes. In fact, many homeowners are able to escape tax-free as long as certain conditions are met.
Any single person selling his or her primary residence can treat as much as $250,000 profit from the sale as tax free. That amount doubles for married couples who file jointly. You can use this exclusion every time you sell your primary residence provided that you lived in the property for at least two years and have not received the exclusion for the sale of another home within the two years prior to this sale.
If you have questions about maximizing your tax exclusions from the sale of a home, now, before the sale takes place, is the perfect time to consult us at 305-231-2150 and ask for Andrew Brody.
Canner Brody and Yan CPAs has been trusted in the South Florida market for over 65 years. As it relates to real estate accounting, we work with the following: