Selling Your Home


If you’re selling your home, there are a few things to know about federal taxes. If you make a profit when you sell your home, you may need to report that as a capital gain when you file your taxes.

However, most individuals don’t need to report the sale as a capital gain if the profit is less than $250,000, or less than $500,000 for couples filing a joint return. That’s as long as you owned and used the property as your main home for two of the past five years.

Here are a few other important points:

1) A loss on a home sale is not deductible.

2) If you claimed a homebuyer credit and sold within three years, you may have to repay the credit.

3) When you move, update your address with the IRS using Form 8822 so you can receive refunds or any correspondence.

For more information on selling your home, see Publication 523, available at www.irs.gov.

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About cozbycpa

Heather L. Cozby is a CPA on the South Shore and Cape Cod. The managing partner of Cozby & Company, LLC, Heather has the resources and experience necessary to provide quality professional services on a timely basis and at a reasonable cost. She specializes in tax planning & preparation; audit, review & compilation services; management advisory services; bookkeeping; and accounting. Her unique niche is in working with homeowners’ associations and condominium trusts, advising with rental real estate, and providing outsourced financial consulting for mid-sized companies. She is more entrepreneurial than most accountants, and offers the best of both worlds - providing the services of a larger firm while retaining the ability to connect with her clients on a personal level.
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