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:

The Enclave At East Hamilton To Host 2 Community Meetings

Bassam Issa of the ANT Group announced plans for two additional meetings with members of the East Brainerd community to receive input on the proposed Enclave at East Hamilton project.  He noted that meetings have taken place with residents at Emerald Valley and Windstone neighborhoods as well as at two additional public meetings.  The project under discussion is ... (click for more)

Real Estate Transfers For July 17-23

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)

County Commission Chairmanship Up For Grabs After Exit Of Henry, Skillern

The chairmanship of the County Commission is up for grabs after the exit of two commissioners who have held the post in recent years. Larry Henry is moving on to serve as Circuit Court clerk. Fred Skillern was upset by Randy Fairbanks in the Republican primary. Most of the returning commissioners have their eye on the possibility of taking over as chairman, or at least getting ... (click for more)

PAST Act On Horse Abuse Stalls Out In U.S. House Despite 70% Support

Rep. Ed Whitfield (KY-01), chairman of the House Subcommittee on Energy and Power, issued the following statement today regarding the Prevent All Soring Tactics (PAST) Act, H.R. 1518:   “I regret to inform you that Speaker of the House, John Boehner, currently refuses  to bring the Prevent All Soring Tactics (PAST) Act to the floor for a vote.  His decision ... (click for more)

Curtis Adams: Beck, Mackey Should Be Considered For County Commission Leadership

Just think about this;  a person highly qualified applying for a job.  As he is just about finished filling out his papers for his interview, he sees at the bottom there is a place for him to check Democrat or Republican.  He would think, “if I mark the wrong one I may not get the job.” Being a real leader requires honesty, integrity, and, most importantly, fairness. ... (click for more)

Roy Exum: Orchids And Onions

With record low temperatures being recorded around the South, I didn’t know what I’d find in my garden on the first day of August but – sure enough -- there is a profusion of orchids and onions. The start of college football will be later this month and, with the chilly mornings, fall practice is a far cry from what it will be when the sweltering heat comes back next week. Here’s ... (click for more)