There are tax benefits to selling real estate in Santa Clarita and elsewhere in Southern California. Most people are aware of the tax benefits of home ownership and the ability to write off the mortgage interest paid when it comes to filing an annual tax return. In addition the tax laws regarding capital gains that are received when selling a home are in a home seller’s interests. If a home owner’s profit is $250,000 or less he does not have to pay a capital gains tax. Likewise if a couple owns a home together they can earn up to $500,000 tax-free profit off the sale of their home. This is one tax benefit that makes investing in a primary residence very appealing indeed.
As with any advice – it is paramount that you verify it with other sources, and I don’t mean sources that are in different fields of business. Check with your Tax Advisor or accountant to make sure the tax law has not changed with reference to “The Tax Benefits of Selling Santa Clarita Real Estate.” The same applies to talking with our Short Sellers in our offices about how them hiring us to negotiate a short sale for them will impact their future.
There are a few rules to follow in the capital gains scenario of selling a home. The first rule is that the home has to be a principal residence. Another catch is that you must have lived in the home for two out of the past five years. Unlike the past however, when you had to buy another home within a specified period of time, you do not have to buy a new, more expensive home with your profit.
The tax benefits of owning and selling real estate are what make owning a home more attractive than renting. Anyone who has steady income, money saved for a down payment, and good credit is in a great position to take advantage of high affordability levels when it comes to buying real estate. The investment can be a good one come tax time.
As my dad always used to say, “You would always get a second opinion if it mean’t that much to you – make sure others do as well…” -dad
Here are a couple things that you will find of Value – if you have been considering selling your Santa Clarita Real Estate and need to find out how much it’s true “market value” is – Visit our Home Valuation Resource Page – The report takes 30 minutes to be generated but it is multi dimensional and quite complete.