April is known for a lot of different things; spring time, showers, baseball, and taxes. While the latter is the least pleasant of those three, if you sold your house last year, or are planning to sell it this year, you could have a few extra deductions to make, which could make tax season a little brighter. Here are four tax deductions that every home seller should be aware of.
Any property taxes that you paid on the home you sold or will sell, are deductible up to the time that you sold it. This deduction is capped at $10,000.
Any cost associated with the sale of your home is tax deductible. Everything from legal fees, escrow fees, commissions, advertising and more can be deducted.
Home Improvement and Repairs
Making improvements and repairs to your home before it goes on the market, or as a contingency for sale, can all be deducted from your taxes. Whether it was a room remodel, painting the house, landscaping, a new roof, or something else; as long as these improvements were made within 90 days of closing, their associated costs can be deducted.
After selling your home, it stands to reason that you likely incurred some moving costs. If you sold your home and moved as a part of your job, the cost of hiring a moving company, renting a truck, and other associated costs can be deducted from your taxes.
These are only a few of the deductions that can help to take the sting out of next tax season. Always consult a tax professional when filing to make sure that these, or any other deductions are appropriate for your situation.