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:

Tim Morrison Joins Crye-Leike Office In Ooltewah

Crye-Leike, REALTORS welcomed affiliate broker Tim Morrison to its office in Ooltewah. Mr. Morrison comes to Crye-Leike from Wendy Dickerson Realty after being there for 9 years.   “I am very happy with the move,” said Mr. Morrison. “Crye-Leike offers so much support and training.” Mr. Morrison assists buyers and sellers in Hamilton, Rhea and Bradley counties. He is ... (click for more)

Real Estate Transfers For Aug. 20-26

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)

Hutcheson Medical Center Seeking Court Approval To Sell Trenton Family Practice For $350,000

Hutcheson Medical Center, continuing to make cost-cutting measures, is seeking court approval to sell the Trenton Family Practice at Trenton, Ga., for $350,000. Ted Rumley, county executive for Dade County, said the medical center is so important for the county that officials have arranged for the Dade County Industrial Development Authority to buy it. He said arrangements ... (click for more)

Sheriff Hammond Says Chattanooga Shooting Was Illustration Of "Islam Terrorism"

"Communism with a god.” That’s how Hamilton County Sheriff Jim Hammond sees Islam.   He also said Muslims are aiming to overtake Tennessee. He said, "They want Tennessee. They are building mosques as fast as they can."   In an address to the Pachyderm Club on Monday, Sheriff Hammond spoke again to the community on the effects of radical Islam and the dangers ... (click for more)

Sheriff Hammond Is Right On The Muslim Threat

Sheriff Hammond is exactly correct on the Muslims in Tennessee.  He sees with clear eyes the problem with the Muslims in our state and country.  They do want to take over Tennessee.  Our politicians are selling us down the river and allowing the trouble makers to dig in like tics and suck out the life's blood of our Constitution and take us over.  They ... (click for more)

Roy Exum: My September Garden

As we begin the annual pilgrimage into fall, I walk through my garden and, in the spirit of Orchids and Onions, I see colorful mums starting to flower at the same time dried-up weeds are begging to be pulled. So as we turn the calendar to September, here are some things that catch my eye: A COLORFUL MUM to Chattanooga State for unveiling the Michael Hennen Hospitality Center in ... (click for more)