Home selling tax breaks – Jackson Hole WY 83001
Tax benefits when selling your JacksonHole primary residence
There are tax benefits that you can claim at the time of selling the place. These can go as far as to exclude either a part or the whole profit that you obtain when you sell the house. Although there are plenty of criteria that need to be met to avail of these tax deductions too, there is a high possibility that you won’t be paying taxes on the profits you make.
- Capital Gains Exclusion – This is considered the most considerable tax benefit that homeowners can enjoy. When you are looking to sell your home, you get a benefit of upto $500,000 if you are married and if you are single, you get a benefit of $ 250,000. This means that all profits up to that point can be kept by the homeowner. Considering that other investments are usually taxed at about 15%, this deduction helps you save about half a million dollars in the process.
- Tax Saving on Home Improvements – While repair work may not have any tax benefits, works that are considered as improvements, like replacing countertops or putting in a new heating system, do come with some benefits. These costs can be added to the purchase price of your home when you plan on selling it. After all, home improvements add value to a house so keeping receipts of this kind of work when it is done will help.