What Taxes Do I Pay When Selling My House?

What Taxes Do I Pay When Selling My House

Regardless of the circumstances, selling a house is not an easy process. There are many aspects of a home sale process you have to deal with, and one of them is taxes. It might be hard for you to understand what taxes you need to pay, and what their impact is on your finances. If you are currently going through the process of selling your property and you want to learn more about taxes, here is the information you need. 

Is It Required To Pay Taxes When You Are Selling Your Home?

Yes, every homeowner selling their property has to pay taxes on the amount they get from the sale. However, there are certain exceptions allowing you to reduce the amount of taxes or eliminate them completely.

If the house that you are selling has been your primary residence for at least two years before you decided to sell it, the amount of $250,000 is tax-free. If you are married and filing taxes with your wife or husband, the tax-free amount would double – $500,000.

If your home is cheaper than $250,000 and you have lived in it less than for two years, you do not have to pay any taxes at all. In this case, the entire home sale process is tax-free.

How To Find Out The Amount You Will Receive For Your Home?

In order to know how much you will get after selling your property, you need to perform certain calculations. The first amount you need to find out is the price of your house. In order to do this, there are several things you should take into consideration. First, the amount you paid when you were buying your current home. For example, if you invested several thousand dollars into home repairs, they should be added to the actual price of the home.

The next thing you do is subtract closing costs, realtor’s fees, and other costs from the price your house was sold for. For example, if the price of the house was $450,000 and you spent around $40,000 on the above-mentioned expenses, the actual price of the home is $410,000.

Finally, you need to subtract the cost basis from the amount you received when you sold the house. If this final number is $250,000 and lower, there are no taxes.

You Can Be Qualified For A Reduced Exclusion

If you do not meet the requirements above, you can consider the option of a reduced exclusion. The reduced exclusion option is for those homeowners who have health issues, change of job, or any other personal and family circumstances. If you do not know whether this option works in your case, you can always talk to a professional and experienced tax expert.

Sell Your Home To a Cash Buyer And Save Money On The Home Sale

Many homeowners do not know but there are options allowing them to save on the home sale process. One of these options is selling a cash home buyer. It is one of the cheapest ways to sell a home because it allows to avoid certain fees, including closing costs and realtor’s commission for example. The best thing about cash buyers is that they purchase all types of homes and they do not care about the conditions, repairs that are needed, location, or other factors.

If you are selling a home in Las Vegas or any other nearby town in Nevada, and you want to sell your house fast, We Buy Houses Las Vegas is the real estate company that is ready to help. The mission of our company is to make the process of selling homes easy and enjoyable for our clients. Do not hesitate to contact us if you have any questions about the sale process, or if you want to know more about our company.