What Deductions Can I Claim on My Taxes for Selling My Home?

what can i claim on my taxes

Selling your home can carry tax deductions.

Discount Points

If you refinanced your mortgage while you owned your house and paid points in cash to buy down your interest rate, the IRS lets you deduct a proportional share of those points every year until the loan is paid off. When you pay off your mortgage by selling your home, you can deduct everything that you haven't deducted in one fell swoop. In other words, if you refinanced three years earlier and paid $3,000 in points, you would be able to take the remaining $2,700 in undeducted points as a deduction in the year you sell your home.

Moving Expenses

If you are selling your house in conjunction with moving for a new job, your moving expenses may be deductible. To qualify to write off your moving expenses, your new home must be at least 50 miles closer to your new job than your old home was. If you do qualify, you can write off your travel expenses, any mileage you drive related

to the move, moving supplies and what you pay the moving company. The write-off is especially valuable because it is claimed as an adjustment to income rather than an itemized deduction. As such, it reduces your adjusted gross income, which may make it easier for you to claim other deductions as well as reducing the risk that you will fall subject to the alternative minimum tax.

Calculating Your Basis

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    Source: homeguides.sfgate.com

    Category: Taxes

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