10 Tax Tips For Individuals Selling Their Home

Wednesday, August 28, 2013
If you are selling your main home this summer or sometime this year, the IRS has some helpful tips for you. Even if you make a profit from the sale of your home, you may not have to report it as income.
 
Here are 10 tips from the IRS to keep in mind when selling your home.
 
  1. If you sell your home at a gain, you may be able to exclude part or all of the profit from your income.
    This rule generally applies if you’ve owned and used the property as your main home for at least two out of the five years before the date of sale.
  2. You normally can exclude up to $250,000 of the gain from your income ($500,000 on a joint return). This excluded gain is also not subject to the new Net Investment Income Tax, which is effective in 2013.
  3. If you can exclude all of the gain, you probably don’t need to report the sale of your home on your tax return.
  4. If you can’t exclude all of the gain, or you choose not to exclude it, you’ll need to report the sale of your home on your tax return. You’ll also have to report the sale if you received a Form 1099-S, Proceeds From Real Estate Transactions.
  5. Use IRS e-file to prepare and file your 2013 tax return next year. E-file software will do most of the work for you. If you prepare a paper return, use the worksheets in Publication 523, Selling Your Home, to figure the gain (or loss) on the sale. The booklet also will help you determine how much of the gain you can exclude.
  6. Generally, you can exclude a gain from the sale of only one main home per two-year period.
  7. If you have more than one home, you can exclude a gain only from the sale of your main home. You must pay tax on the gain from selling any other home. If you have two homes and live in both of them, your main home is usually the one you live in most of the time.
  8. Special rules may apply when you sell a home for which you received the first-time homebuyer credit. See Publication 523 for details.
  9. You cannot deduct a loss from the sale of your main home.
  10. When you sell your home and move, be sure to update your address with the IRS and the U.S. Postal Service. File Form 8822, Change of Address, to notify the IRS.
 
For more information on this topic, see Publication 523. It’s available at IRS.gov or by calling 800 TAX-FORM (800 829-3676).

Additional IRS Resources:

Real Estate Transfers For May 12-18

NOTICE: The Hamilton County Register’s Office did not publish this data. All information in the Register’s Office is public information as set out in T.C.A. 10-7-503. For questions regarding this report, please call Chattanoogan.com at 423 266-2325. GI numbers, listed when street addresses are not available, refer to the location of transactions (book number and page number) ... (click for more)

Asking Price For East Brainerd Elementary School Site Is Just Under $5 Million

The asking price for the East Brainerd Elementary School site at 7453 East Brainerd Road is just under $5 million. Robert Fisher of KW commercial said, "This property is 9.1 acres of level land located in the heart of Chattanooga's retail district. It is one block off of the E. Brainerd Road and Gunbarrel Road intersection. "It has been a very long time since a retail ... (click for more)

Sources Say Domestic Incident Involving Mayor's Aide Came After Husband Confronted Her And Mayor Behind Restaurant; Berke Says Charge "Absolutely False"; Fletcher Says Gave Shelter To Lacie Stone; Case Handled Like Any Other

A domestic disorder involving a top female aide to Mayor Andy Berke was sparked after her husband recently confronted the aide and the mayor in a parked car behind a Mexican restaurant, several sources said.   Mayor Andy Berke said late Tuesday night, "Last weekend a member of my senior staff was the victim of a domestic assault involving her husband. Upon being arrested ... (click for more)

Roommate Of Chance LeCroy Describes Sept. 9, 2010 Murder

The roommate of Chance LeCroy told a Criminal Court jury on Tuesday of the terrifying day that robbers burst into their residence and killed the 21-year-old LeCroy. Patrick Carmody, one of three men charged in the slaying, is standing trial in the courtroom of Judge Barry Steelman. Also charged were Ronald Lee Pittman and Billy Bob Parton. Carmody pleaded not guilty to ... (click for more)

Colonel Enicks Is Turning Out Leaders At Red Bank High School

I am a former teacher and football coach at Red Bank High School. I have been a witness to the great things that happen at Red Bank High School.  The teaching staff has a great mixture of experience and promising new teachers.   Dr. Robertson, the principal, is a great man and a wonderful role model for students. He shows up the same way every day and his consistency ... (click for more)

Roy Exum: Christian Schools Bully, Too

Earlier this week, after I shared a story about bullying written by a very brave mother, it opened a floodgate of emails from parents and students who have been forced to endure such madness in our elementary, junior and senior high schools. Discipline is the No. 1 problem in our schools. Because of it, or because of a lack of it, no wonder our children cannot achieve all that ... (click for more)