Tax Advantages When Selling a Home

Thanks to the Taxpayer Relief Act of 1997, today's homeowners stand to gain incredible tax breaks when they sell their primary residence. But before you put up that "For Sale" sign in the front yard, you must speak with a tax professional such as Taxxmart to ensure your home meets all the qualifications.

Don't base your decision on whether to sell your home on old information and outdated laws. We can help guide you through the process of selling your home and gaining every tax advantage you qualify for. Here are four myths surrounding home sales and capital gains taxes:

  1. You have to buy another home with your proceeds. FALSE
  2. There's a limit on the number of times for the home sales tax exemption. FALSE
  3. Your rental property is ineligible as your primary residence. FALSE
  4. You have to live in the house at the date of sale. FALSE

No matter what you've heard about capital gains taxes in the past, make sure you have the most current information from a qualified real estate agent or tax specialist such as Taxxmart. Don't let misinformation stop you from making a move that's right for you.

Foreclosure and Selling

Foreclosure is the process that occurs when you have defaulted on your mortgage and the bank takes steps to legally sell your home to recover the loss. Selling your home provides you some options in satisfying the bank and reducing the impact on your financial history. Always consult with a real estate or financial expert such as Taxxmart as you begin the process so you can take advantage of the expert advice and direction.

Short selling your home when facing foreclosure is one option you have. Short selling happens when your lender agrees to accept proceeds from the sale of the property, even though they fall short of the lending agreement. Banks often choose this route to gain some money from a property facing foreclosure rather than accumulating property. A financial expert such as Taxxmart can help guide you through this complex process, from the first steps through to a satisfactory conclusion.

Another option when facing foreclosure includes declaring bankruptcy. This legal action places an automatic stay on all your debts to creditors, including your mortgage lender. It requires them to cease collection immediately and postpones any sale. This can give you more time to sell the home or work out payment arrangements per your Chapter 13 bankruptcy process.

Whichever route you decide, always consult with a lending and real estate expert who can advise you on the best course of action. Even when you are in financial trouble, selling your home may be one way to help relieved your debt burden.

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