If you sold your home in 2019, you might be able to snag a few tax benefits – but as always, you should talk to a tax professional to be sure.
Sold Your Home in 2019? Check Out These Potential Tax Deductions
- Selling costs
- Home improvements and repairs
- Property taxes
- Mortgage interest
Here’s a closer look at each.
Deducting Selling Costs
If you sold your home last year, you may be able to deduct things like:
- legal fees
- escrow fees
- advertising costs
- real estate agent commissions
If you want to deduct these things, they must be directly related to the sale of your home – and you must have lived in the home for at least two of the last five years.
Deducting Home Improvements and Repairs
Did you make any home improvements last year? If you did – like remodeling the bathroom, revamping the kitchen, or upgrading to energy efficient appliances, you may be able to deduct them on your taxes this year. You might even be able to write off house-painting.
The catch: You must have made these improvements within 90 days of closing on the deal.
Deducting Property Taxes
You can often deduct the amount you paid in property taxes. Naturally, you can’t deduct for the time after you sold the home – but you probably can for the time you lived in it.
Deducting Mortgage Interest
You can probably deduct the mortgage interest you paid for the part of the year you owned your home. Under the new tax law, though, you can only deduct the interest on up to $750,000 of mortgage debt. If you got the mortgage prior to December 15, 2017, you can continue deducting the interest on up to $1 million of mortgage debt.
Are You Buying a Home or Land for Sale in Lake City?
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